Value Added Tax

Value Added Tax (or VAT) is an indirect tax. Occasionally you might also see it referred to as a type of general consumption tax. In a country which has a VAT, it is imposed on most supplies of goods and services that are bought and sold.

VAT return is a form you file to show how much VAT you are due to pay to government. If you’re not registered for VAT, you won’t file VAT returns.

To enable the VAT Return in the application, go to Settings»Accounting»Financial Reports and tick the VAT Return Report and save the changes.

After that you will be able to create VAT from the Tax rates and use it in your invoices.

 

The VAT can be tracked using the VAT Return available from the Accounts Reports.

Once you save the VAT Return it will be copied to the VAT Report.

 

See also