VAT Receivable

VAT Receivable is the asset ledger, number 1241 under Indirect Tax Assets, where a Purchase Invoice debits the VAT shown on a supplier's tax invoice. It is a claim against the IRD: at month end it is set off against VAT Payable and only the net is remitted, and if input exceeds output the excess carries forward or is refunded. Only VAT on a proper tax invoice from a registered supplier, with the supplier's PAN, counts; a bill without VAT, like the demo office chairs, posts nothing here. Claiming input VAT on a non-tax invoice, or on personal purchases, is disallowed and penalised, so reconcile this ledger with the Purchase Book before every return.

VAT Receivable for the month = Sum of input VAT on valid purchase tax invoices = Taxable purchases x 13%.

1. 01Go to Invoicing > Purchase Invoice > New and pick the VAT-registered supplier; check its PAN is filled.
2. 02Enter the stationery at Rs 10,000 with template VAT 13% - YFF; the VAT row shows Rs 1,300.
3. 03Type the supplier's invoice number and date in Bill No and Bill Date.
4. 04Submit. The entry above posts and the bill lists in the Purchase Book with its input VAT.
5. 05Open the VAT Receivable ledger from the chart and tie its monthly total to the Purchase Book.

Purchase Invoices from VAT-registered suppliers debit it.

A Rs 11,300 bill for stationery carries Rs 1,300 of input VAT.