Automatic VAT/GST on purchases?
Maf. King
maf at chilwell.net
Sun Jul 9 10:35:33 EDT 2006
On Sunday 09 July 2006 14:10, Mark Blakeney wrote:
> Hi,
>
> I am a [ex-]Quicken user looking to move to gnucash or kmymoney and have
> a question about gnucash. Is it possible to set up automatic VAT/GST
> apportioning on purchases? If so, then sometimes the GST must be taken
> out of the gross amount entered, other times then the GST must be added
> to the net amount entered (dependent on the particular primary expense
> account entered).
>
> There is a gnucash FAQ on how to handle GST tracking and it mentions
> that you can set up a tax table for "GST Payable" which will
> automatically apportion the GST owed on invoices and collate the tax
> owed, but I can't work out how to do the analogous operation on
> payments? Having this for payments is more important because you must
> enter a lot of them and having to manually calculate and split out the
> GST is onerous and error prone. BTW, kmymoney has automatic VAT/GST
> splits for both income and expenses. In both cases the split can be
> based on net or gross amounts.
Hi Mark,
The only way that VAT/GST can be apportioned automatically in the 1.8.x series
of GC is through the "business subsystem".
That means running a full-on A/P (bills you need to pay) or A/R (invoices your
clients need to pay) setup, which may be overkill for your needs. GC handles
varying tax rates - eg 17.5% standard rate, 5% reduced rate for electricity
etc, or 0% for books etc. defaults rates are set on a per-expense-account
basis.
The general registers don't do anything like this. :-(
I don't know if that is different in the 1.9 series (surely 2.0 soon?)
HTH,
Maf.
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