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ICB Main Site -> Forum Home -> Level 1 and 2 Bookkeeping -> Input VAT and Output VAT
Input VAT and Output VAT
Sun 15 May 2011 01:27 PM
No Membership

5 posts
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 Maskell
Sun 15 May 2011 04:45 PM


Member CB.Dip PM.Dip
Practice Licence

92 posts
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.


You've got a lot of choices in your life. If getting out of bed in the morning is a chore and you're not smiling on a regular basis, try another choice.

Mon 16 May 2011 01:10 PM
Member CB.Dip
Practice Licence

99 posts
The way I remember it is that when you put a Purchase invoice INto your system (as in someone else printed it) it's INput VAT. When you send an invoice OUT to a customer it's OUTput VAT.

Also if you've got cost and sales the right way round in your head then just link the VAT to that. Purchase or INput VAT is on Cost invoice so it's a Debit and Sales or OUTput VAT is on a Sales invoice so it's a Credit.

Hope that helps as well and doesn't confuse you more. Good luck with your studies.

Edited for spelling and formatting.

Edited at 16 May 2011 01:13 PM GMT
Wed 18 May 2011 03:40 PM
No Membership

5 posts
Hey Guys

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

Thanks very much.

Kind Regards


Craig Maskell
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