I have recently become VAT registered and I am a bit confused by the “Accumulated Purchase VAT” bit in the tax summary.
When I log a purchase from a supplier that is VAT registered, it only sometimes adds this to the Accumulated Purchase VAT column.
Should this not increase with every purchase I enter?
It does with some suppliers but not all.
Ive checked the supplier details and the default VAT rate is set to 20%
The tax summary shows VAT on an accrual basis, so providing the invoice is raised with VAT and in the date range on the report, it should be there.
If you’re seeing different, if you could give me some example invoice numbers, we’ll take a quick look for you
Hi there. Thank you for replying. Purchase #QF00290 is an example of this. I have deleted the payment and reapplied it but the tax summary doesn’t change.
Hi Lorn
That sounds right as the VAT figures in the Tax Summary are calculated on an accrual basis (by reference to the invoice) not on a cash basis (by reference to payments). If you deleted the entire invoice and restored, then it would alter the figures on the Tax Summary report.
If you’d like to see the changes on a cash basis it’s better to run a draft VAT return.
Hope that helps!
Thank you very much indeed. That definitely helps. It’s exactly what I was looking for. 
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