VAT Cash accounting or accrual accounting?

Accounting
1

Hi All,

I have just registered for VAT & would like to use flat rate. Normally our accounts are on accrual basis. Please could you help me with the following?

  1. This might sound silly but when our normal accounts are accrual, can we have cash based VAT accounting?
  2. When doing flat rate, can we use cash based accounting for VAT? Do we need to tell HMRC?
  3. We provide services to other EU countries online. Do we need to register for VAT EC Sales List (ECSL)?
  4. We buy traffic from adwords, do we need to register for VAT Reverse Charge Sales List (RCSL)?

Many many thanks!
Alister

2
  1. Yes you can, the regular reports in QF are accrual anyway. It’s just that the VAT returns are calculated on a cash basis.
  2. On Flat Rate we allow you to use cash or accrual method. You can set this in the VAT settings area. I would first check with HMRC to see if they are OK with this.
  3. If you have a figure in box 8 (Supplies of goods and related costs to other EC Member States) of your VAT return then you will need to file an ECSL.
  4. RCSLs only apply if you make supplies of mobile phones or computer chips (source)
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