When using the cash accounting scheme for VAT, a company reclaims VAT on its purchases when it has paid its suppliers. But if a company makes purchases on a company credit card, does the company reclaim VAT for the VAT period when the purchases were made or does the company reclaim VAT for the VAT period when it pays off the credit card?
Province/Country relating to question: England
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The trigger for cash accounting VAT is when the item is paid. Therefore if the cost is being paid for by credit card, it is fine to reclaim the VAT at the point of paying for it by credit card.
Paying for something on credit card is just a way of financing a transaction.
Certified Chartered Accountant