taxes

When should I enable Exclude journal from VAT return ?

Zoho Books has given you an option to Exclude the journal from VAT return, that involves the account which is created to track VAT.

One of the use cases for providing this option is as follows:

If you sell goods/service to a customer for a 12 month period and create an invoice for that amount, this invoice amount should be shown on the VAT report.

However, rather than showing the entire income in the first month itself, you might want the income for every month (112) for Accounting purpose alone.

For this, you can :

Create a journal to move the invoice net amount from the sales account to the any other account (like PrePayment). For every month, create a journal to move 112 of that amount back from the Prepayments account to the original Sales account.

Please note : Both these journals must have “Exclude this journal from VAT Return” checkbox checked.

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