As I said before VAT:Input VAT receives only VAT on Purchases VAT:Output VAT receives only VAT on Sales VAT:VAT Return receives only periodic government VAT transfers
The VAT parent account does not receive any splits; but its balance (including children accounts) will tell me, roughly, the VAT payable (or receivable). It will reset towards zero. On Sun, 16 Aug 2020 at 13:46, Omer Hayat <omer.ha...@outlook.com> wrote: > @Christopher Lam <christopher....@gmail.com> I'll show this to my > accountant. > In the meanwhile, I tried following: > > Created a 'TAX' account under 'Liability' parent account. Then created 2 > sub-accounts under the TAX account, Input VAT & Output VAT respectively. > Now, when I post the vendor bills or customer invoices, the VAT is recorded > properly in these sub-accounts, and their main account TAX also shows a > final figure. But, from here I'm not clear what to do. I passed an entry: > > DR TAX > CR Bank > > with the equivalent amount. This did make the amount to '0' for the TAX, > but the 2 sub-accounts still have the respective amounts in them. Although, > the Liabilities parent account was also showing a correct balance, as I > think it just picks up the amount from TAX. > > Not sure if this will be a correct way of doing, or maybe there are > multiple ways to do this. > ------------------------------ > *From:* Christopher Lam <christopher....@gmail.com> > *Sent:* Sunday, August 16, 2020 2:00 PM > *To:* Omer Hayat <omer.ha...@outlook.com> > *Cc:* gnucash-user@gnucash.org <gnucash-user@gnucash.org> > *Subject:* Re: [GNC] Recording Tax Correctly > > Hi Omer, my approach is: > > - VAT:Input VAT - an ASSET account > - VAT:Output VAT- a LIABILITY account > - VAT:VAT Return - an ASSET or LIABILITY account > > and run the "Income & GST Statement" periodically, posting the govt > returns as follows: > Dr VAT:VAT Return > Cr Bank > > HTH, C > > On Sun, 16 Aug 2020 at 07:55, Omer Hayat <omer.ha...@outlook.com> wrote: > > Hi. > We have a 5% VAT charged on all bills and invoices. To the government, we > pay the difference. > I have setup an 'Input VAT(paid to Vendor)' and 'Output VAT(received from > Customers)' accounts under Liabilities, and set them up. These are > recording the VAT paid & received from Bills/Invoices correctly. The Input > VAT account has negative values, and output VAT has positive values. We are > supposed to pay the difference of these. > For example: > > VAT paid to Vendor > (50.00) > VAT received from Customer 75.00 > FINAL VAT PAYABLE TO GOVT 25.00 > > Keeping the above example, I would like to pass one entry, and pay off the > difference amount. > Example: > DR Final Payable to Govt > CR Bank > But, how can I pass the Debit entry? Should I create a 'Tax' placeholder > account and pass it to that? But then the individual Input & Output VAT > accounts might have a balance. > > Please advise. > _______________________________________________ > 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. > > _______________________________________________ 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.
