VAT on Purchases

Code: 2162
👁 Views: 39

Account Information

Account Type Statement of Financial Position
Normal Balance Debit

Definition

VAT paid on company purchases

Common Journal Entries

Record VAT on purchases

Dr. Purchases
Dr. VAT on Purchases
Cr. Accounts Payable

Claim input VAT refund

Dr. Tax Refund Receivable
Cr. VAT on Purchases

Offset input VAT against output VAT

Dr. VAT on Sales
Cr. VAT on Purchases

Adjust purchase VAT after return

Dr. Accounts Payable
Cr. VAT on Purchases

Record VAT on purchases

Dr. Purchases
Dr. VAT on Purchases
Cr. Accounts Payable

Claim input VAT refund

Dr. Tax Refund Receivable
Cr. VAT on Purchases

Offset input VAT against output VAT

Dr. VAT on Sales
Cr. VAT on Purchases

Adjust purchase VAT after return

Dr. Accounts Payable
Cr. VAT on Purchases