{"id":150657,"date":"2026-10-14T08:04:53","date_gmt":"2026-10-14T08:04:53","guid":{"rendered":"https:\/\/docs.daftra.com\/?post_type=faq&p=150657"},"modified":"2026-10-14T14:30:55","modified_gmt":"2026-10-14T14:30:55","slug":"does-daftra-calculate-vat-on-a-cash-basis-or-an-accrual-basis","status":"publish","type":"faq","link":"https:\/\/docs.daftra.com\/en\/faq\/does-daftra-calculate-vat-on-a-cash-basis-or-an-accrual-basis\/","title":{"rendered":"Does Daftra calculate VAT on a cash basis or an accrual basis?"},"content":{"rendered":"
\n

Daftra supports both bases<\/strong> in the Tax Declaration<\/strong><\/a> report. You choose the basis from the Revenue Type<\/strong> filter each time you view the report. There is no fixed company setting for it. Journal entries, however, are always recorded on an accrual<\/strong> basis.<\/p>\n

What is the difference between the Revenue Type options?<\/h3>\n\n\n\n\n\n\n
Revenue Type<\/th>\nBasis<\/th>\nWhen does a sales invoice appear in the declaration?<\/th>\n<\/tr>\n
Issued (Accrual)<\/strong><\/td>\nAccrual<\/td>\nOn the invoice date, whether it is paid or not.<\/td>\n<\/tr>\n
Fully Paid (Cash)<\/strong><\/td>\nCash<\/td>\nOnly once it is fully paid, on the date of its last payment.<\/td>\n<\/tr>\n
Partially Paid (Cash)<\/strong><\/td>\nCash<\/td>\nOnly while it is partially paid, on the date of its last payment. Fully paid invoices are not included, and the invoice’s full tax is shown, not just the paid share.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n

\ud83d\udec8<\/span><\/p>\n

Note:<\/strong> The cash options apply to sales documents: sales invoices, debit notes, sales refunds, credit notes and advance payments. Purchase documents always appear by their own date, and journal entries by the entry date.<\/p>\n<\/div>\n

How do I view the declaration on the basis my company uses?<\/h3>\n
    \n
  1. From Reports<\/strong> \u203a Accounting Reports<\/strong>, open Tax Declaration<\/strong><\/a>.<\/li>\n
  2. In Revenue Type<\/strong>, choose Issued (Accrual)<\/strong> for the accrual basis, or Fully Paid (Cash)<\/strong> for the cash basis.<\/li>\n
  3. Set the declaration period, then click Show Report<\/strong>.<\/li>\n<\/ol>\n

    Does my choice affect the accounts?<\/h3>\n

    No. The invoice journal entry (sales and tax) is always posted when the invoice is issued, which is the accrual basis. That is why the Trial Balance<\/strong> and the VAT account show the tax due on issued invoices. Changing Revenue Type<\/strong> only changes how the Tax Declaration report is displayed.<\/p>\n

    \n

    \ud83d\udec8<\/span><\/p>\n

    Important:<\/strong> Whether you use the cash or accrual basis depends on your country’s tax authority rules and the size of your business. It is not a setting in the system. Ask your accountant or tax advisor which basis applies to your company.<\/p>\n<\/div>\n<\/div>\n","protected":false},"author":39,"template":"","categories":[2054,2043],"tags":[22095,22094,22099,22102,22103,22097,22100,22096,22098,22101],"class_list":["post-150657","faq","type-faq","status-publish","hentry","category-tax-settings","category-settings","tag-accrual-basis-vat","tag-cash-basis-vat","tag-cash-vs-accrual-accounting","tag-does-daftra-use-cash-or-accrual-basis","tag-how-to-show-the-tax-declaration-on-a-cash-basis","tag-revenue-type-filter","tag-tax-declaration-basis","tag-tax-declaration-report","tag-vat-on-paid-invoices","tag-vat-return-basis"],"yoast_head":"\nDoes Daftra calculate VAT on a cash basis or an accrual basis? - Daftra Knowledge Base<\/title>\n<meta name=\"description\" content=\"Learn whether Daftra uses the cash or accrual basis for VAT, how to choose the basis in the Tax Declaration report, and how it affects your accounts.\" \/>\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\/does-daftra-calculate-vat-on-a-cash-basis-or-an-accrual-basis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Does Daftra calculate VAT on a cash basis or an accrual basis? 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