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• # 70974
• Sun 15 May 2011 01:27 PM

Hello Every one

                          I was just wondering, if some one could explain the difference between, output and input vat ? Im just find it a bit confusing. And how do you if VAT is a debit or a credit. In the VAT account ?

Thanks for reading my question guys.

Kind Regards

Craig.

• Craig Maskell
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• # 70976
• Sun 15 May 2011 04:45 PM

When you purchase goods/services from a supplier then the VAT on this purchase is called input tax and VAT on any goods/servioces that you sell is output tax.

As you can reclaim any input tax this will apear on the debit side and output tax is a credit as you owe it to HMRC.

Hope this helps.

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• # 71099
• Wed 18 May 2011 03:40 PM

Hey Guys

         Thanks for the replies, they really helped me understand the whole issue much better.

Thanks very much.

Kind Regards

Craig

• Craig Maskell
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