VAT setup for Tax exempt company

hant

Dear all,

We have a client want to book the VAT amount to the same account as they book the VAT base amount. For example, they've got one purchase invoice for cleaning service with VAT of 10%. As normal, this VAT amount will be booked to the G/L account setup in VAT Posting Setup, but they want to book to the same account that they book cleaning service expense. The reason is they still need to print out the VAT report to the Tax Authority but in accounting purpose, that's no VAT. It's just VAT reporting purpose. Does anyone have any idea how to handle it?

Thanks in advance,

hant

Malajlo

VAT statement is generated by VAT customer (vendor) group and VAT produsc group.
If you want to post amount on same G/L account, you have to set up new combination of mentioned VAT codes.
Is your case (I realy don't know your laws) that your vendor (cleaning company) is not obligated to report VAT? Therefore your company also can not "request" return of VAT?
If you need to exlude (or include) VAT amount in accounting purpose, you should use different G/L account and modify account schedules.