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Level 1

My system correctly accrues VAT into a Current Liabilities Account Called VAT Payable. How do I now correctly handle the actual payment of VAT to SARS.

I want to know how to enter a payment of VAT to SARS, correctly debiting the bank account and reducing the Current Liabilities VAT Payable account at the same time 

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Best answer September 26, 2019

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Level 15

My system correctly accrues VAT into a Current Liabilities Account Called VAT Payable. How do I now correctly handle the actual payment of VAT to SARS.

When you make the payment, use that same liability account as the expense (reason) for the payment.  That will lower the liability by the amount paid

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Highlighted
Level 15

My system correctly accrues VAT into a Current Liabilities Account Called VAT Payable. How do I now correctly handle the actual payment of VAT to SARS.

When you make the payment, use that same liability account as the expense (reason) for the payment.  That will lower the liability by the amount paid

View solution in original post