Q. If my small company bought two vans on a credit agreement how would I account for the VAT?
28 August 2012
Both vans cost £12,000 plus VAT but the payments are being made via a finance company over a period of three years.
Both vans cost £12,000 plus VAT but the payments are being made via a finance company over a period of three years. Can I offset the input vat for the total amounts through the purchase ledger in the month that the vans were delivered, or do I have to remember to offset the proportion of VAT on the
payments over the next 36 months?
The recovery as...