@Christopher Lam<mailto: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<mailto: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<mailto: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.
