Purchase VAT not being picked up on sales tax report
discountfoot
Member Posts: 1
Hello. The VAT on sales invoice is showing on the sales tax report but the vat on purchase invoices isnt. I've checked the dates etc.. cant understand why the purchase vat is not getting picked up.
0
Comments
simular issue. I use sales tax and use tax. the purchases that have use tax added are not shoowing onthe sales tax report.
Hey @discountfoot and @curtiv this may have to do with whether or not the tax was setup as recoverable versus non-recoverable. For Use Tax in Wave, I talked to our Wave+ Bookkeeping and Accounting team to confirm what the best way to account for tax accrual is and the provided me with the following:
Say you have a $100 item, and use tax would come to $5. You would add a debit of $5 to the item purchased (expense or asset) set up a Use tax payable account on the balance sheet and credit $5. When the use tax is remitted you would debit the use tax payable account and credit cash. I hope this helps to clarify a little!
Also, for taxes you are looking at which are not recoverable and therefore not showing on the report, you can still take a look at the balance on that account. If you head to Reports > Account Transactions, you should be able to filter down to that tax, which will automatically have made a liability account where the relevant transactions are tracked.