How to pay a Sales Tax invoice?

[Nelson Handcock]

Thanks for all the suggestions - very helpful. I'm pretty sure I have a
better idea now.

Love this GNUCash user community!



On Tue, Jan 31, 2017 at 6:00 AM, Liz <edodd at billiau.net> wrote:

> Maf. King wrote:
> > On Monday, 30 January 2017 11:13:17 GMT Nelson Handcock wrote:
> >> Hi,
> >>
> >> Bumping my question - still stuck with this....
> >>
> >> Thanks & Regards,
> >>
> >> Nelson Handcock
> >
> >
> > Hi Nelson,
> >
> > I was going to reply to your original post with a UK-centric viewpoint,
> > but
> > Geert beat me to it and i thought i wouldn't be adding much to his reply.
> >
> > Here, we have VAT, which sounds similar to your GST in as much as you
> > charge
> > some on your invoices, you pay some with your bills, and quarterly, you
> > report
> > and hand the difference over to the taxman.
> >
> > IMHO, the calculation for the taxman doesn't give rise to a new invoice
> > (in
> > the GC sense of the word, needing a supplier and A/P accounts etc.)  What
> > you
> > have is effectively a statement of facts, with a bottom line of  "pay us
> > $x
> > now"
> >
> > The tax demand is asking for the money that belongs to the government,
> > which
> > you have collected on their behalf along with your invoices.  Yes, you
> can
> > offset the bits you have paid out to your suppliers, but in effect what
> > they
> > are asking for has never been yours; you have been "keeping it safe" for
> > them.
> >
> > So I create a "manual transaction" from the bank account, with (at least)
> > 3
> > splits, not an "AP transaction".  This transaction reduces the bank
> > balance by
> > the total that is due to the tax dept, and at the same time zeroes out
> the
> > "Tax Collected" and "tax paid" accounts.  The GC transaction should
> > balance,
> > as Tax Collected - Tax paid = tax due from bank account
> >
> > That's how I do it in the UK.  YMMV, of course.
> >
> > HTH,
> > Maf.
> >
>
> I do mine with multisplits also. I have transactions which contain 0.00
> for the amounts in the scheduled transactions list, and put in the
> required amounts to return the balances of GST:collected GST:paid and
> GST:paid:vehicle to zero.
> GST:paid:vehicle has to have initial arithmetic to pay my personal share
> of the car costs.
> My PAYG tax is also in those transactions as I pay that monthly.
>
> Importantly, the date of those transactions is fixed to the last day of
> the month, even though I really pay the owed money some weeks later. This
> helps me sort out what I have to pay each month.
>
> Liz
>
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