{"id":11154,"date":"2023-05-18T09:29:55","date_gmt":"2023-05-18T09:29:55","guid":{"rendered":"https:\/\/docs.daftra.com\/faq\/%d9%83%d9%8a%d9%81-%d9%8a%d9%85%d9%83%d9%86%d9%86%d9%8a-%d8%aa%d8%b3%d9%88%d9%8a%d8%a9-%d9%88%d8%b3%d8%af%d8%a7%d8%af-%d8%a7%d9%84%d8%b6%d8%b1%d9%8a%d8%a8%d8%a9-%d8%a7%d9%84%d9%85%d8%b6%d8%a7%d9%81\/"},"modified":"2023-12-26T12:42:49","modified_gmt":"2023-12-26T12:42:49","slug":"how-can-i-settle-and-pay-the-vat","status":"publish","type":"faq","link":"https:\/\/docs.daftra.com\/en\/faq\/how-can-i-settle-and-pay-the-vat\/","title":{"rendered":"How can I settle and pay the VAT?"},"content":{"rendered":"

Firstly: It is essential to understand the tax due through the tax report or the tax return found in the accounting reports.<\/strong><\/p>\n

Secondly: Tax Settlement<\/strong>
\nTo settle the Value Added Tax (VAT), we need the existence of three accounts as follows:<\/p>\n

1- Account for “Income VAT”<\/strong>.
\n2- Account for “Outcome VAT”<\/strong>.
\n3- Account for “VAT Under Settlement”<\/strong>.<\/p>\n

Accounts number 1<\/strong> and 2<\/strong> are available by default in the Chart of Accounts<\/strong>.<\/p>\n

A new account for account number 3<\/strong> is created in the Chart of Accounts under the VAT Payable<\/strong> account as follows:<\/p>\n

Liabilities<\/strong> > Current Liabilities<\/strong> > VAT Payable<\/strong> > Add Account<\/strong><\/p>\n

Thirdly: Settlement Entry at the End of the Declaration Period<\/strong><\/p>\n

From A\/C Income VAT<\/strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0xxxx<\/strong><\/p>\n

To A\/C\u00a0Outcome VAT<\/b>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 xxxx<\/strong><\/p>\n

To A\/C VAT Under Settlement\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0xxxx<\/strong><\/p>\n

Fourthly: Tax Payment journal Entry<\/strong><\/p>\n

From A\/C VAT Under Settlement\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0xxxx<\/strong><\/p>\n

To A\/C Treasury \/ Bank\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0xxxx<\/strong><\/p>\n","protected":false},"author":17,"template":"","categories":[2109,2116],"tags":[5191,2881,5193],"class_list":["post-11154","faq","type-faq","status-publish","hentry","category-general-accounting","category-journal-entries","tag---en"],"yoast_head":"\nHow can I settle and pay the VAT? - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/faq\/how-can-i-settle-and-pay-the-vat\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How can I settle and pay the VAT? - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"Firstly: It is essential to understand the tax due through the tax report or the tax return found in the accounting reports. 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Secondly: Tax Settlement To settle the Value Added Tax (VAT), we need the existence of three accounts as follows: 1- Account for “Income VAT”. 2- Account for “Outcome VAT”. 3- Account for “VAT […]","og_url":"https:\/\/docs.daftra.com\/en\/faq\/how-can-i-settle-and-pay-the-vat\/","og_site_name":"Daftra Knowledge Base","article_modified_time":"2023-12-26T12:42:49+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/docs.daftra.com\/#website","url":"https:\/\/docs.daftra.com\/","name":"Daftra Knowledge Base","description":"Daftra","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/docs.daftra.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/docs.daftra.com\/en\/faq\/how-can-i-settle-and-pay-the-vat\/#webpage","url":"https:\/\/docs.daftra.com\/en\/faq\/how-can-i-settle-and-pay-the-vat\/","name":"How can I settle and pay the VAT? - Daftra Knowledge Base","isPartOf":{"@id":"https:\/\/docs.daftra.com\/#website"},"datePublished":"2023-05-18T09:29:55+00:00","dateModified":"2023-12-26T12:42:49+00:00","breadcrumb":{"@id":"https:\/\/docs.daftra.com\/en\/faq\/how-can-i-settle-and-pay-the-vat\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/docs.daftra.com\/en\/faq\/how-can-i-settle-and-pay-the-vat\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/docs.daftra.com\/en\/faq\/how-can-i-settle-and-pay-the-vat\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/docs.daftra.com\/en\/"},{"@type":"ListItem","position":2,"name":"How can I settle and pay the VAT?"}]}]}},"_links":{"self":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/faq\/11154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/faq"}],"about":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/types\/faq"}],"author":[{"embeddable":true,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":5,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/faq\/11154\/revisions"}],"predecessor-version":[{"id":11168,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/faq\/11154\/revisions\/11168"}],"wp:attachment":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/media?parent=11154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/categories?post=11154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/tags?post=11154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}