Oh dear, it turns out we don't get VAT back...

[Keith A. Milner]

On Thursday 16 Jun 2011 14:44:55 Keith A. Milner wrote:
> On Thursday 16 Jun 2011 12:16:45 Keith A. Milner wrote:

> In almost every case you'll
> only ever be able to reclaim a portion of the VAT paid anyway. there will
> always be some VAT amount as an overhead. At the moment it's 100%. Maybe if
> you VAT register it goes down to 80%, but if you are doing VAT accounting
> that basically means that your VAT payments cannot be categorised against
> other accounts (or at least not easily).

As I clicked the Send button, I reaslied this is complete rubbish. Of course 
it's entirely possible to reclaim all of your VAT provided you have also 
collected the same amount or more in Sales. Doh!

Sorry about that.

But I still stand by the rest of it... I'm not sure why your basic 
accounting/reporting methods would necassarily need to change just because you 
are reclaiming some or all VAT.

Cheers,

-- 
Keith A. Milner