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For practices that are cash accounting (post invoices as proforma or are a low turnover business), the VAT liability is accountable once a receipt has been received from a the client.
Produce a VAT receipt
A VAT receipt can be produced in two ways, by matching or by accounting for VAT on the receipt. These are explained below.
(i) Produce a VAT receipt by matching
To produce a VAT receipt by matching:
Match a proforma invoice to a receipt
For practice's that post invoices as proforma, a VAT receipt can be produced by matching a proforma invoice to a receipt.
For example, a proforma invoice is posted for £1000 on the 1st of the month and a receipt is received on the 10th for £1000. When the £1000 receipt is matched to the proforma invoice the VAT receipt is produced.
Match an invoice to a receipt, for low turnover firms
For practices that post invoices but are a low turnover business), VAT receipts can be produced by matching an invoice to a receipt.
For example, an invoice is posted for £600 on the 1st of the month and a receipt is received on the 10th for £600. When the £600receipt is matched to the invoice the VAT receipt is produced.
A VAT receipt can be produced once the full value of the receipt has been matched to a proforma invoice (or invoice for low turnover firms).
If the VAT receipt has been matched to more than one proforma invoice (or invoice for low turnover firms), multiple VAT receipts will be produced.
(ii)To produce a VAT receipt by accounting for VAT on the receipt
This method of producing a VAT receipt is used when a practice needs to account for VAT on a receipt when an invoice posting does not exist. This is typically used when a client pays by standing order and VAT needs to accounted for.
To use this option place a tick next to 'account for VAT' on the standing order (or receipt) posting.
VAT receipt details
Displayed are a some details on the VAT receipt
Date
Displayed is the tax point date (date of receipt).
Invoice number
For VAT receipts produced via matching, displayed is the invoice number that the receipt has been posted to.
This is not available when a VAT receipt has been produced ticking the 'account for VAT' option.
The VAT receipt document can be produced in bulk by using the Bulk Fees documents. To produce one or two documents, it is recommended that the Fees Account display is used. Click here for the help topic.