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VAT

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › VAT

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 24, 2023 at 4:13 pm #683474
    Avatarsguha
    Participant
    • Topics: 64
    • Replies: 42
    • ☆☆

    in case a vat registered business, buys a fixed asset on which vat is paid
    entry will be

    Fixed asset Dr
    Sales Tax Dr
    To Bank Cr

    but if the business is not vat registered, entry will be

    Fixed asset Dr
    To Bank cr

    we will include the VAT amount in asset and depreciate that

    is it right?

    April 25, 2023 at 7:55 pm #683525
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    That is correct.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘VAT’ is closed to new replies.

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