VAT Cash received basis

[contemporary]

I have been having a look at the revenues money received basis for accounting for VAT, [broken link removed]

What I cant see clearly is the why you would deal with purchase invoices. Can you claim the VAT on them as soon as you received them do is this done when you payment

The revenue link doesnt specify it, at least from what i can see

 

[Graham_07]

Regardless of the method of accounting for moneys received, VAT on inputs (purchases or expenses) is normally on the invoice date. If you have an invoice dated 14/03/10 then it goes into March 2010 purchases, regardless of when it is actually paid.

 

[Tentman]

Any purchases/expenses can be claimed anytime during the year.

 

[contemporary]

Thanks guys

 

[contemporary]

Just revisiting this, any ideas how you account for an invoice that is part paid? Do you wait until it is completely paid or do you pro-rata the vat element?

 

[Paddy199]

You apply the appropriate VAT rate to the cash receipt i.e. the VAT rate that applied to that invoice.

What accounts software are you using (if any)?