| # Value added tax (VAT) postings Periodical VAT declaration If you use the standard procedure, when you submit the periodical VAT declaration ERP LN creates the following postings:
Amount | Debit/ Credit | Ledger account | Defined in session
--- | --- | --- | ---
VAT payable | Credit | Sales Tax account of the VAT tax code | Posting Data for Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000)
VAT receivable | Debit | Purchase Tax account of the VAT tax code
Net VAT amount of the declaration * | Credit | Interim Tax Payment Account or Interim Tax Recoverable Account of the tax declaration master | Tax Declaration Master (tfgld1620m000)
* If the net VAT amount of the declaration is less than zero, ERP LN uses the Interim Tax Payment Account, otherwise, ERP LN uses the Interim Tax Recoverable Account. Using a tax balancing account If you use an additional tax balancing account, when you submit the periodical VAT declaration, ERP LN creates the following postings:
Amount | Debit/ Credit | Ledger account | Defined in session
--- | --- | --- | ---
VAT payable | Credit | Sales Tax account of the VAT tax code | Posting Data for Tax Codes (tfgld0171s000) or Posting Data for Multiple Tax Codes (tfgld0170s000)
VAT receivable | Debit | Purchase Tax account of the VAT tax code
Net VAT amount of the declaration | Credit | Interim Tax Payment Account of the tax declaration master | Tax Declaration Master (tfgld1620m000)
To balance the tax accounts, ERP LN creates the following postings:
Amount | Debit/ Credit | Ledger account | Defined in session
--- | --- | --- | ---
Net VAT amount of the declaration | Debit | Interim Tax Payment Account of the tax declaration master | Tax Declaration Master (tfgld1620m000)
Net VAT amount of the declaration * | Credit | Interim Tax Payment Account or Interim Tax Recoverable Account of the tax declaration master | Tax Declaration Master (tfgld1620m000)
* If the net VAT amount of the declaration is less than zero, ERP LN uses the Interim Tax Payment Account, otherwise, ERP LN uses the Interim Tax Recoverable Account. Periodical VAT payment If you process the payment of the VAT declaration, ERP LN creates the following postings:
Amount | Debit/ Credit | Ledger account | Defined in session
--- | --- | --- | ---
Net VAT amount of the declaration | Debit | Interim Tax Payment Account or Interim Tax Recoverable Account of the tax declaration master. | Tax Declaration Master (tfgld1620m000)
Bank | Credit | Account selected for the transaction type used for the bank in Cash Management. |
Related topics Withholding tax postings To process tax declarations |