a Little help with EU Tax setup please

[Wm]

On 11/02/2016 22:08, benny wrote:
> Hello everyone,
> 
> First of all, well done to the programmers of GNUCash, I downloaded it
> tonight and was really surprised on how pretty it looks.
> 
> Tonight I am trying to setup my EU tax rates but struggle a little bit.
> 
> In the new account tab I would like to set my types of output and input VAT
> but I am not sure how to set them properly.
> 
> Could someone tell me what are the top accounts types please, is input vat
> an asset? and output vat a liability?
> 
> VAT
> --INPUT
> Purchases
> -IC Purchase
> 
> 
> 
> --OUTPUT
> Sales
> -IC Sales

Different countries have different conventions.

You are correct that

Input VAT on Purchases is an Asset
Output VAT on Sales is a Liability

Because VAT on Sales will usually exceed VAT on Purchases the net amount
is a Liability.

So in the UK it is generally set up like this

Liabilities
--- VAT
--- --- VAT on Purchases
--- --- VAT on Sales

but their is no reason why you can't put it as a top level account or
place it under Assets, try moving it about and see how it looks in a
balance sheet.

You may find this link useful once you get beyond the CoA bit

http://gnucash.wikia.com/wiki/Create_Tax_table_for_VAT

-- 
Wm