VAT Exempt Company - where do I put the VAT?

[ALEXALLI]

Hi all,

I was wondering if anybody can help me? I am starting to do book keeping for a Chauffeur Company and they are VAT Exempt. I have read up on the Revenue website and it states that although they dont need to register for VAT or keep records or charge VAT on their Sales Invoices they do have to pay VAT on their purchases.

So, my question is: Do I charge the gross amount (ie net amount + vat charge) to the P&L or do I show the VAT Amount seperately?

Any help would be appreciated.

Thanks,

 

[Nige]

Charge the gross amount.

 

[ALEXALLI]

Charge the gross amount.

Great, so if I have an Eircom Invoice for 100+21% VAT=121 - Then I charge 121 to Telephone on the P & L is that right?

 

[Nige]

yes

 

[ALEXALLI]

yes

Thanks very much for your prompt reply.