hink 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
> *Sent:* Sunday, August 16, 2020 2:00 PM
> *To:* Omer Hayat
> *Cc:* gnucash-u
PS: Yes, as Christopher notes, could place VAT paid as an asset (which
it properly is). I was following the set up you were describing instead,
placing VAT paid as a contra account. Also sensible, as under normal
conditions, the parent VAT is going to have a net credit balance << your
business
On 8/16/2020 3:54 AM, Omer Hayat 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
ways to do this.
From: Christopher Lam
Sent: Sunday, August 16, 2020 2:00 PM
To: Omer Hayat
Cc: 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
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
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
