Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

VAT payable to tax authority

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 1 Presentation of Financial Statements
US GAAP ASC 606 Revenue from Contracts with Customers

❓ Frequently Asked Questions

Q: What is VAT payable?

A: The Value Added Tax that the company must remit to the tax authority after offsetting input VAT from output VAT.

Q: How is VAT payable calculated?

A: Net payable = Output VAT (on sales) - Input VAT (on purchases). If positive, recorded as a liability.

Q: When is VAT payable due?

A: Usually within the month following the transaction month, according to each country's filing deadlines.