VAT Receivable

VAT Receivable, number 1241 with account type Tax, is the ledger where Purchase Invoices post the 13 percent VAT shown on a supplier's tax invoice. It is a claim against the IRD: on the monthly VAT Return it is set off against VAT Payable and only the net is remitted, and a surplus carries forward or is refunded. The Item Tax Template and the purchase side of the VAT 13% template both point here. Only VAT on a proper tax invoice from a PAN-registered supplier counts, and purchases for private use or for exempt sales are not claimable. Had the Dell laptop come on a VAT bill, Rs 13,000 would sit here against a Rs 1,13,000 payable.

VAT Receivable for the month = Taxable purchases x 13% on valid tax invoices; set off: Net VAT = VAT Payable - VAT Receivable.

1. 01Go to Invoicing > Purchase Invoice > New, pick the supplier and confirm its PAN in Tax ID.
2. 02Add the item and set the template to VAT 13% - YFF; the tax row points at this account.
3. 03Fill Bill No and Bill Date from the supplier's tax invoice and Submit; the entry above posts.
4. 04Open Nepal IRD > Purchase Book for the month; the input VAT total equals this ledger's debits.
5. 05After filing the VAT Return, post the set-off by Journal Entry: debit VAT Payable, credit VAT Receivable.

Posted automatically by Purchase Invoice when the VAT template is applied. Netted with VAT Payable in the monthly return.

Dr Office Equipment Rs 1,00,000, Dr VAT Receivable Rs 13,000, Cr Creditors Rs 1,13,000 if the Dell laptop had come on a VAT bill.