Banking and reconciliation
Recording a VAT payment to the Tax Authority
When you pay the Tax Authority your VAT liability, you need to record it to reduce your VAT liability on your balance sheet.
Step-by-step instructions
Assume you've made a payment of SAR 10,000 for your VAT liability to the Tax Authority. To record this payment:
- Go to
Bank Accounts
on the left side menu. - Click on
Transactions
on the bank account you made the payment from. - On the transactions sheet in a new row, enter the following:
- The
Date
you made the payment. - A
Description
, for example, "VAT payment for Jan-Mar 2022". - The
Amount
paid. Make sure you enter the amount as a negative, i.e.-10,000
, since this is money leaving the account. - Under
Classify to account
, chooseVAT
.
VAT is a system account
The VAT
account is the system account that Wafeq uses to keep track of your VAT.