Which is why everyone should speak to a local CPA for official guidance.
Regards,
Adrien
> On Aug 9, 2018, at 2:25 PM, Christian Kluge wrote:
>
> Hi,
>
> under certain circumstances VAT can be treated as expense/income,
> e. g. in Germany when one’s only required to do cash based accounting.
>
Hi,
under certain circumstances VAT can be treated as expense/income,
e. g. in Germany when one’s only required to do cash based accounting.
In that case payable output tax and refunds would be treated as income
and input tax and vat payments are treated as expense.
Kind regards
Christian Kluge
By all means, talk to a local CPA, but usually a pass through is treated as a
liability.
So you’d have this account:
Liabilities:VAT payable
The invoice transaction would look like this:
Dr. Cash/Checking/etc.
Cr. Income
Cr. Liabilities:VAT payable
The debit would be for the full amount recei
I don't know how it should be set up as I'm using this only for personal
bookkeeping.
To answer the question: the VAT is a liability(?) in that I receive it from
the customers and have to give it back to the state.
There's is also some VAT on expenses but it would be too tedious too track
that for
This doesn’t answer the base issue of where the accounts are placed in the
report, but shouldn’t that VAT account be a liability instead of expense? Is
this VAT that you are charging customers and passing along to the government?
Or is this VAT that you are paying on purchases?
Regards,
Adrien
This problem might be two-folded.
I have several categories of payments or receivables that have both positive
and negative entries. For example, I might receive payment with VAT included
but the respective amount is later paid out after a few months. This shows
an entry under "comes from"(+) for
