Can you please clarify me its main disadvantage: Input VAT will only be recovered on a cash basis? When input VAT can be recovered?
Ask the Tutor ACCA TX-UK
VAT- cash accounting
The tax point in determining which return period a purchase or expense will be allocated to, will now be when the payment is made rather than being based on the invoice date which would usually be earlier. This may therefore put the input tax to be recovered into a later VAT return period thus delaying the recovery of that input VAT
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