How do you go about claiming the VAT on the expenses that employees claim back to be reimbursed (ie. stationery bought on behalf of company etc.)
In your salary expense account you would have the amount including VAT as part of the salary paid to them. So the "stationery" expense would be in your expense accounts (now in salaries) including VAT.
How do you now show the expense as excluding VAT in your expense accounts and claim input VAT on this expense?
Do you reallocate this expense from salaries to the correct expense account (ie. stationery)?