Free ACCA FA1 Sales Tax (VAT) Recording Study Guide

Overview

This module covers VAT recording and accounting procedures, including VAT concepts and terminology, recording VAT in day books, and maintaining VAT control accounts. Topics include output and input tax, VAT returns, and reconciliation procedures.

1. VAT concepts and terminology

• Output tax, input tax, and net VAT
• Taxable supplies and exemptions
• VAT rates and invoice requirements

2. Recording VAT in day books

• VAT on sales, purchases, and returns
• Discounts and VAT treatment
• Posting VAT to ledgers and cash book

3. VAT control account and returns

• Maintaining the VAT control account
• Reconciling VAT control to records
• Preparing figures for VAT returns