VAT control for company accounts

billygreenway · ‎January 28, 2022

I'm in the process of preparing my books in order to file my company accounts. I am a business who registered for VAT in September 2021.

Before September "VAT Control" shows up on my balance sheet as a current liability but I was not registered for VAT before this time and so I am not owed anything for this VAT Control amount. Since September I have been paying VAT in accordance with HMRC policies and therefore there is not a VAT control account present.

How should I account for VAT in this instance? How can I get rid of the "VAT control" account on my balance sheet?

Ashleigh1 · ‎January 28, 2022

Hello Billygreenway,

Welcome to the Community page,

the VAT control shows the VAT amounts from recorded transactions. If they shouldn't have an amount from before September then they shouldn't have VAT on any of those transactions. It would be a case of having to go through all the transactions and making sure that the correct VAT code has been applied to each transaction.

billygreenway · ‎January 28, 2022

Makes sense!

The transactions in the VAT control account are made up of items that are imported to UK from other countries - VAT is paid on import to UK. How can I account for VAT with these imported items?

Ashleigh1 · ‎January 28, 2022

No Problem at all there Billygreenway, you would need to speak to a trained and qualified accountant about whether you need to account for the VAT before you were VAT registered or not, and if so, the accountant should be able to tell you what exact VAT code to use as we are just technical support and not trained accountants.

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VAT control for company accounts