lipbalmpam
Registered User
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- 15
I have a query, i am responsible for book-keeping, vat and paye/prsi returns where I work. We do a lot of work for insurance companies where we work on there behalf and therefore invoices for those jobs are not vat applicable. My query is this....
Our accountant now advises that if (for example) we do 10,000 euros worth of work for insurance companies and 5,000 euros worth is not vat applicable that we can only claim back 50% of VAT on our purchase invoices when making the VAT return... Is this correct. When I calculate our vat return on sage it simply deducts the vat on purchases from the vat on sales and we pay the difference....
Please advise, my boss is freaking out that we owe thousands to the Revenue and I would like clarification myself.
Thanks
Pam
Our accountant now advises that if (for example) we do 10,000 euros worth of work for insurance companies and 5,000 euros worth is not vat applicable that we can only claim back 50% of VAT on our purchase invoices when making the VAT return... Is this correct. When I calculate our vat return on sage it simply deducts the vat on purchases from the vat on sales and we pay the difference....
Please advise, my boss is freaking out that we owe thousands to the Revenue and I would like clarification myself.
Thanks
Pam