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Value Added Tax (VAT)

VAT (Value Added Tax) is a type of tax imposed on the sale of goods and services. VAT is charged at a specific rate determined by the government, which is currently 11%. Complete the tax information along with the estimate (CoA) that will accommodate the tax value. See image 3.2.6:

Setup​

VAT

Image 3.2.6 - Tax

  1. In the Code field, type the required tax code.
  2. In the Type combo box, select the type of tax to be registered.
  3. In the Name field, type the name of the tax to be registered.
  4. In the Rate field, type the percentage rate of the tax to be charged or required.
  5. In the Purchase COA combo box, select the estimate to accommodate the Value Added Tax value from the purchase (Input VAT).
  6. In the Sales COA combo box, select the estimate to accommodate the value of the Value Added Tax from the sales (Output VAT).
  7. Press the Save button to save the created data.