Accounting for VAT adjustments when prices change
HMRC has updated the accounting rules for adjustments to VAT when there are increases or reductions in the price of goods or services, set to come into effect in September.
The measure is designed to crack down on potential abuse of the regulations which has been happening as the current rules do not impose a time limit for making VAT adjustments when price adjustments are made. Regardless of this, it is a requirement that the VAT must be adjusted.
Read more at the Accountancy Daily.