How do I record the payment of VAT and income tax without them appearing as expenses and then showing in both the P&L account and the next period VAT return as a purchase amount?
VAT payments won't show up in your P and L report if they're made under the VAT Center, HD7.
Instead, they're posted under the VAT Suspense account. Income tax on the other hand, will show up if the Income Tax Expense if used in checks or expense transactions.
Also, unpaid VAT are automatically reported under the VAT Payable account. This will show up in your Balance Sheet and not in the P and L report. I would recommend reaching to your accountant on how you can tag the next VAT return as purchase amount.
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