processing invoices and bills

[Ed Delves]

> Generally, UK VAT is done on an accruals basis, not cash.  This means that 
> the
> tax becomes due when you do the paperwork, or make the suppy. (the Tax 
> Date on
> an invoice)  Not when funds actually transfer.  Under this approach, yes, 
> if
> you write an invoice on 14th March (as I just have) and the VAT quarter 
> ends
> on 31/3 (it will for me), then the tax from the 14th March is treated in 
> that
> quarter.  no matter when you actually get the money from the customer
> (sept/october in your case?)  -  I must include the invoice totals in the
> relevant boxes 1 and 6 on the vat return and payment due around early 
> april.

That makes sense but if this is the case then why doesn't GC attribute the 
VAT in the current period when you print a transaction report? It appears to 
wait until the bill has been paid (months later). I take it then that under 
this system, you pay (or get a VAT rebate) even if the bill/invoice NEVER 
gets paid?