Value added tax (VAT) postings

Periodical VAT declaration

If you use the standard procedure, when you submit the periodical VAT declaration 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, LN uses the Interim Tax Payment Account, otherwise, 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, 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, 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, LN uses the Interim Tax Payment Account, otherwise, LN uses the Interim Tax Recoverable Account.

Periodical VAT payment

If you process the payment of the VAT declaration, 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.