VAT Tax Payable and Receivable

VAT Tax Payable and Receivable

VAT Tax Payable

First, go to Admin -> Admin Setup -> System Settings.

Check the box “Check to treat taxes as VAT Tax: VAT or Consumption Taxes are used outside United States” if your company is located outside the United States and you are required to PAY VAT Taxes.

Next, create a VAT Tax Group by going to Admin -> Setup Receivables -> Sales Taxes and click on
“Consumption VAT Tax Groups Add/Update”.

To include VAT taxes for vendors on the Sales Tax report, assign vendors to a tax rate, and then when purchasing, indicate the amount of tax on the vendor bill. When this is done, it will show as credits on the VAT tax report.

To do this go to Contacts -> Vendors -> Edit Vendor. Choose your VAT Tax in the “Sales Tax District” section. You can also choose the “Consumption VAT Tax Group” if you set this up on the Sales Tax screen.

Finally, go to Payables -> Vendor Bills -> New Vendor Bill. On the second input screen you will indicate the VAT Tax amount.

VAT Tax Receivable

To create your VAT Tax go to Admin -> Setup Receivables -> Sales Taxes.

To apply a sales tax to an order or invoice choose the tax in the drop down menu in the “Sales Tax” section.

VAT Tax Help

Getting Started With VAT Taxes


Sales/VAT Tax

Video Training Library