GST and VAT Taxes

The sample data that comes with Pilot ERP illustrates how to deal with GST or VAT. There are 2 GL accounts 1195 "GST Receivable" (an asset) and 2040 "GST Payable" (a liability). You can of course use different account numbers and names for your data.

1195 "GST Receivable" is used for AP vendor (supplier) invoices and is called "receivable" since you receive a credit from the government. An AP invoice would typically have one or more expense GL accounts, and the GST or VAT entered to 1195 "GST Receivable". On AP invoices you enter the tax separately, it's not calculated automatically.

2040 "GST Payable" is used for AR customer invoices and is called "payable" since you have to pay it to the government. On AR invoices sales taxes are calculated automatically and posted to the appropriate GL accounts.

To determine how much GST or VAT you must pay to the government, you use either the GL Trial Balance Report, or the GL Totals screen (Accounting | GL Totals). It would be the net of the 2 above accounts. You would create an AP invoice to pay the government and use the GST/VAT GL accounts, which would then clear the balance in them for the selected period.

To see the detail for the GST/VAT accounts, you use the GL History screen (Accounting | GL History) for the selected account & period. You can print this via menu File | Print.

There is an Invoice Register Report, which shows taxes charged to customers, with totals. This is at Reports | Sales | Sales Invoice Register.