Sales Tax/VAT paying it
John Whitmore
arigead at gmail.com
Mon Mar 14 18:56:12 EDT 2016
I've been using gnucash now for about 6 months for my business and re-reading
the user guide every now and again. Pick up a little each time as I'm not an
accountant. One of the things that I'm still doing wrong is Sales Tax/Vat.
First off gnucash is doing things right when I purchase goods and pay Vat on
those goods gnucash reduces my liability:Vat account.
When I charge Vat on the goods or services I supply gnucash increases my
liability:Vat account. One small point there is that I'm liabile for the Vat
when the Invoice is paid. But gnucash increases liability as soon as invoice
is posted. That's a small point and not a big deal.
What is a bigger deal is that I've been paying Vat to the government and doing
it wrong. I've been paying it but registering the money in an expenses:Vat
account. That's obviously wrong and I should be paying the vat and having it
clearing the Liability:Vat account.
Could somebody possibly confirm that. On the face of it Sales Tax/Vat is as
simple as, but it could use a few pages in user guide for us slow people.
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