Prepaid VAT

[SarahUK27]

Hi

Hope this is in the right group!!

I'm using MS Office Accounting Express 2008 and have discovered a balance on
a "Prepaid VAT" account which has been automatically generated through a VAT
return. Unfortunately, I cannot trace why this has happened, just the VAT
return period that it was created from.

Can anybody explain to me why this has happened? The prepaid VAT account is
a liability account. The only VAT we could have possibly prepaid is on a
monthly advance telephone bill that we pay a set amount upfront for each
month. I've got no idea how to get rid of this balance - and I can't trace
back to it either. If it was purchase (input) VAT though, surely that would
be a current asset?

Any help would be appreciated.

Thanks.

Sarah

[D. Gabriel]

I can't speak specifically about the various VAT calculations; I've never had
to deal with them directly. I'd suggest taking a peek at this blog post that
deals with accounting for flat rate VAT. It may shed some light on where your
posting came from...
http://blogs.msdn.com/thuneby/archive/2009/03/03/flat-rate-vat-in-office-accounting-uk.aspx

Post by SarahUK27
Hi
Hope this is in the right group!!
I'm using MS Office Accounting Express 2008 and have discovered a balance on
a "Prepaid VAT" account which has been automatically generated through a VAT
return. Unfortunately, I cannot trace why this has happened, just the VAT
return period that it was created from.
Can anybody explain to me why this has happened? The prepaid VAT account is
a liability account. The only VAT we could have possibly prepaid is on a
monthly advance telephone bill that we pay a set amount upfront for each
month. I've got no idea how to get rid of this balance - and I can't trace
back to it either. If it was purchase (input) VAT though, surely that would
be a current asset?
Any help would be appreciated.
Thanks.
Sarah