> On May 22, 2018, at 6:40 PM, Matthew Pounsett <m...@conundrum.com> wrote: > > > > On 22 May 2018 at 19:36, Adrien Monteleone <adrien.montele...@lusfiber.net> > wrote: > Sales Tax on sales is *not* an expense or revenue. You shouldn’t need to > balance it against anything. It’s a pass-through liability.‡ It should have > no bearing on your books other than you have to collect it and remit it. > > Sales tax on sales is a positive liability that needs to be paid to the > government. Sales tax on purchases is a negative liability that offsets > sales tax on sales, and reduces the amount payable to the government. So, I > need to track it.
Be sure to clear this with someone knowledgeable in your jurisdiction. Purchases you make for your own business use (but not resold or incorporated into your products) might be a direct expense of the business and may not be able to offset VAT due on your sales. An example of this might be VAT paid on office supplies for general administration. You are using them directly, and not reselling or using them as components in your final product. That VAT in some places is simply a business expense. Regards, Adrien > > > Note, if you are in a VAT jurisdiction and you are reimbursing for services, > product or materials that will be resold/incorporated into a final product, > then you have a complication with tracking the VAT paid on those expenses. > (which there is another thread on the list in the last 3-4 months about as I > mentioned.) > > Yes, exactly. See above. > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
