How to pay a Sales Tax invoice?

[Geert Janssens]

Op zondag 22 januari 2017 07:37:52 CET schreef Nelson Handcock:
> Hi,
> 
> I have a GST Liability Account that has a "Tax on Purchases" and and "Tax
> of Sales" sub-account, and the net Tax payable amount is showing on the
> parent GST Account.
> 
> I have posted invoices from suppliers and customers, and I can see the tax
> split amounts in the GST accounts. It looks correct - if I have $1000- in
> Tax on Purchases and $600 in Tax on Sales, the parent account shows a
> balance of $400-.
> 
> 
> This thread has a comment "So now you have a tax liability automatically
> created in which you can pay whenever you need. Just move your funds from
> the relevant asset account to extinguish the liability. "
> 
I believe the author here meant you create a correcting transaction directly 
between your bank account and your GST sub-accounts. Here in Belgium no 
invoice is involved in paying the tax due.

> It's this part I am having trouble understanding. I have to pay the Tax
> Department the balance of $400.
> 
Hmm, this seems to contradict your explanation above. It appears to me you 
swapped Tax on Purchases and Tax on Sales above. Anyway, I'll go with your 
statement you need to pay $400 to the Tax department.

If you do want/need to handle this via a bill you can add two entries to the 
bill. One to balance the Tax on purchases amount and one to balance the Tax on 
sales amount. Use the respective liability sub accounts directly as transfer 
account and make sure to set no tax table for either.

Then post your bill as usual. At this point your Tax accounts should be back 
to 0.

Finally when you do pay the amount, apply that payment to your invoice and 
everything should balance.

Can you work with this ?

Geert