Financial Skills: Tax: VAT: Accounts Payable Staff

Course Overview

When is an invoice not a VAT invoice? When can a business properly reclaim the VAT charged to it, and how much? Heavy penalties and interest charges can apply if a business gets it wrong, so it is vital that errors do not occur. On the other hand, a business which does not claim as much VAT as it should and as early as it can is operating at a disadvantage. This course is for accounts payable staff who need in depth, detailed and practical training on this subject. The course includes practical 'in tray' exercises during which delegates will analyse invoices dealing with points covered on the course.

Course Outline

WHEN VAT CAN BE CLAIMED

• Tax points
• The effect of deposits
• Payment with no invoice

EVIDENCE NEEDED TO RECLAIM VAT

• Full VAT invoices -all the requirements
• VAT numbers and how to check them
• Less detailed tax invoices -all the requirements and when they are acceptable
• Imports and acquisitions
• Circumstances in which no invoice is needed
• Pro forma invoices

HOW MUCH VAT TO RECLAIM

• Purchase VAT which is never reclaimable
• The effect of partial exemption and 'non business' activities
• Discounts -cash, quantity and contingent

SPECIFIC EXPENSES

• In the 'course or furtherance' of the business
• Director's expenses
• Employee's expenses and subsistence
• Employees resident abroad
• Motor cars, motor car accessories and fuel
• Business entertainment and business promotions
• Staff catering and staff parties
• The 'reverse charge' on services from abroad
• Land and buildings
• Self supplies and change of use