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H
HD7
October 22, 2019
Question

Recording VAT and income tax payments

  • October 22, 2019
  • 1 reply
  • 0 views

How do I record the payment of VAT and income tax without them appearing as expenses and then showing in both the P&L account and the next period VAT return as a purchase amount?

1 reply

JenoP
JenoP
October 22, 2019

VAT payments won't show up in your P and L report if they're made under the VAT Center, HD7.

 

Instead, they're posted under the VAT Suspense account. Income tax on the other hand, will show up if the Income Tax Expense if used in checks or expense transactions. 

 

Also, unpaid VAT are automatically reported under the VAT Payable account. This will show up in your Balance Sheet and not in the P and L report. I would recommend reaching to your accountant on how you can tag the next VAT return as purchase amount. 

 

The Community is always here to guide anytime you need help and if you have follow-up questions.

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