cancel
Showing results for 
Search instead for 
Did you mean: 
jrmcielos1
Level 1

I think QBO is not accurately recording input VAT. It should not be an expense. It is an Other Current Asset.. To be offset against Output VAT

 
1 Comment 1
Adrian_A
Moderator

I think QBO is not accurately recording input VAT. It should not be an expense. It is an Other Current Asset.. To be offset against Output VAT

I'm here to share some information when recording VAT, jrmcielos1.

 

Once you setup Sales Tax, the system will automatically create an Input and Output tax accounts. 

 

When you create an invoice, the Output tax account is credited. Then, the Input tax accounts will be debited when you enter a bill.

 

To offset the amounts between the Input and Output tax accounts, you'll need to make an adjustment. Afterward, you'll have to transfer their difference to the Tax Payable account.

 

Feel free to take a look at this article that has detailed information when making adjustments: What is Tax Adjustment and How Do I Use It?

 

I'm just a post-away if there's anything that I can help. Take care!