I am an Accountant, the shareholder pays suppliers on behalf of the company, can i treat him as a supplier?

Question

Please note i need topost the expenses to relavant accounts, as well as to show that i have been charged VAT.

Answer 1

Everyone who supplies is a supplier even if they are - also - a shareholder.

However, who has issued the invoice? and to whom was it addressed.

If we assume that the first supplier has addressed the invoice to your company and your shareholders only have paid them on behalf of your company then you need to make the followign bookings:

1 - receipt of invoice

2 - payment of invoice and receiving a loan from your shareholders

3 - settling of the loan obtained from your shareholders (somewhere later)

You will need the following documents

- invoice issued to your company with VAT

- loan agreement, with interest

- confirmation that the invoice is paid by your shareholders (this might be a simple note signed by your shareholders).