vat on supplier deposit

Question

We have som enew suppliers that import goods for us from over seas. 
 They require 30% deposit at point of order for which they send us a "quote" of the full amount &pound;100k and we are required to pay 33k. 
 The deposit takes place in January, and the goods are only due to us 6 months later. 
 How am I able to claim the vat back in the april vat return. 
 We have posted 33k as a pyment on supplier account in the january date, but am unsure of where it will eventually tie up with the main amount once paid on full delivery 7 months later. 
 
 Thanks 
 John

Anth Richardson · Accepted Answer

Hi John, 
 Thanks for using Sage City . 
 It'd be useful to know which VAT Scheme you're processing under as this can vary depending on if you're on Standard VAT, VAT Cash Accounting or Flat Rate. 
 If you're on a Standard VAT scheme, when you raise the invoice with VAT on it - The full amount is reported on your next VAT Return in line with the regulations for Standard VAT Schemes. 
 For VAT Cash Accounting, the VAT is due when the payment is made/recevied - Therefore, when posting the supplier payment just choose the correct VAT rate and it'll show on your next return. 
 Flat Rate calculates with the same method as Standard VAT, but applies an overall VAT percentage at the point of calculating your VAT Return and overrides the detaulf 20%/5% etc. 
 
 If you need any more help with this, I'd recommend you get in touch with our Techincal Support Team to get tailored advice 
 Have a great day, 
 Regards. 
 Anth 
 Sage UKI

Sage Accounting UKI

vat on supplier deposit

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