VAT calculation

[Cam Ellison]

Yuval Hager wrote:
> Hi,
> 
> I've started using Gnucash not long ago and am very happy with it.
> 
> I was wondering what is the simplest method to calculate Value Added Tax - for 
> which I can get refund from the state. I have scanned the docs, FAQ and 
> mailing list, and frankley, I could not understand what should I do.
> 
> Basically, I would like to have an expense marked as "VAT included", and make 
> a split - net pay goes to the correct expense account, while the VAT itself 
> goes to a different account (Account payable? Negative liability?). However, 
> I want this all to be automated, according to the VAT rate. Of course, VAT is 
> not applied to all expenses.
> 
> I am slowly coming to the conclusion that this is under the 'business 
> features' which is not yet fully developed, but I might be missing something 
> here.
> 
> I'll appreciate any more info on this, thanks!
> 

I think this is in the Wiki.

Set up a Liability Account, with two sub-accounts.  One is for VAT you 
charge, the other for VAT you pay.  As long as you put nothing into the 
parent account, it will show the net owing it the account tree and reports.

HTH

Cam

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Cam Ellison, Ph.D. R.Psych. #1417

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