Hi Jackie,
Vat cash accounting sheme:
Account for Vat when you pay suppliers
Account for Vat when customers pay you - therefore when they receive the cash/card receipts from customers the vat is accounted for at the time of sale not when they decide to bank some or all of it!
What would happen if they never banked the money from customers?
If they sent out invoices to customers then the vat would only be accounted for when the customer paid.
Does this help?
Marilyn
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