How do i account for VAT recoverable on invoices from vendors on the day we receive the invoice rather than the day it is paid and comes through as an expense?

Answer

Hi there, @andy,

You can reclaim the tax amount on your bills/expenses if you're using an accrual method. This will be added as reclaimable VAT on your Tax return.

To verify your accounting scheme, please follow the steps listed below:

  1. Select Taxes from the left pane, then click the VAT tab.
  2. Click Edit VAT, the select Edit Settings.
  3. Go to the VAT accounting scheme section to check the method.
  4. If it's under Cash method, then you need to select Standard.
  5. Using the cash method will include the amount in the report when the bill is paid.

Please see the attached screenshots for your guidance:

Should you have follow-up questions, please let me know and I'll get back to you.

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IntuitMaryLand , Community Support Specialist
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