How do I record VAT in a manual entry so it appears in the VAT return?

The VAT return is built from invoices and vouchers, and from manual entry lines whose VAT type has been set. So when you record VAT with a manual entry, set its type so it lands in the right place in the return.

Steps

1. Open Accounting → Add manual entry.
2. Enter the lines, using the tax account for the tax line.
3. Under the tax line choose the VAT type:
   • Purchase VAT: tax on the debit side.
   • Sales VAT: tax on the credit side.
   • Payment to the tax authority: paying the tax due, or a refund; not in the return.
4. Check the amount before tax; it is worked out from the tax rate under General Settings → Settings → Tax & E-Invoicing — correct it if it differs from the document, and type it if the rate is zero.
5. Press Save, then open Accounting → Reports → VAT Tax Declaration for the period: the line is listed, marked Manual journal entry.

Examples

• Cash purchase at 15% VAT: debit the expense 1,000 + debit the tax 150 (purchase VAT) / credit the cash box 1,150.
• Credit sale at 15% VAT: debit the customer 1,150 / credit revenue 1,000 + credit the tax 150 (sales VAT).
• Paying the tax: debit the tax 500 (payment to the authority) / credit the bank 500.
• Purchase return: the tax on the credit side, type purchase VAT; it is deducted from input tax.

Notes

• An entry with a tax line that has no type is not saved; the reason shows in red on the page.
• Older entries on the tax account stay out of the return until you open them, choose their VAT type and save.
• The trial balance and the account statement show the entry either way; the VAT type only concerns the return.