whether VAT is an asset or liabilities?
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Answer / niranjan nayak
It is both an asset and liability.When it is collected from
purchaser it is a lisbility for seller and an asset for
purchaser.
| Is This Answer Correct ? | 115 Yes | 19 No |
Answer / h.r. sreepada bhagi
VAT charged in the Tax Invoice is a liability to the Seller
as the amount should be remitted to the Government. It's an
Asset to the buyer,as he's entitled for setting it off
against VAT liability on his sales. At the end of the month
VAT on Sales and Purchases can be adjusted against each
other and if VAT on Purchase is more than VAT on sales
during that month, it will appear as 'Input VAT Credit'
under 'Current Assets, Loans & Advances' & if VAT on Sales
is more than VAT on Purchases, it will appear as 'VAT
Payable' under Current Liabilities & Provisions in the
Balance Sheet.
| Is This Answer Correct ? | 53 Yes | 1 No |
Answer / sham
Yes, It is effect on both sides, Assets and Liabilities, If
VAT pay against Purchase it will effect on Assets and
If Collect against Sales it will effect on Liabilities.
| Is This Answer Correct ? | 30 Yes | 1 No |
Answer / angshujit das
Yes it is a assats for a purchaser because, it is like a
payment of liability in advance, and liability for a seller.
| Is This Answer Correct ? | 29 Yes | 3 No |
Answer / tax beginner
VAT (Value Added Tax) applicable on Company’s Sales is its
liability since Company have to remit the same to
Government as Taxes on Monthly/Quarterly/Yearly Basis
(Return cum payment). A company can always pass the Burden
of this tax onto its customer by way of including it in its
Net Sales price. While making payment to Government a
company can avail setoff (reduce from VAT liability) for
the VAT paid by it for the purchases which go in to
production and ultimately gets converted into saleable
product. Thus the Eligible Input Tax Credit (Setoff) is an
Asset to a Company and gets reduced from its VAT Liability
to the Government. In Balance sheet it can be shown in
Current Asset and gets reduced/knocked off/reversed as and
when VAT Liability is discharged by making necessary
entries in Books of Accounts.
| Is This Answer Correct ? | 19 Yes | 1 No |
Answer / aftab shaikh
Yes, It is effect on both sides, Assets and Liabilities, If
VAT pay against Purchase it will effect on Liabilities and
If Collect against Sales it will effect on Assets.
| Is This Answer Correct ? | 32 Yes | 20 No |
Answer / kiran
y this is effected on both sides,
v purchase against tax invoice then vat refundable so that
is assets.
and v sale against tax invocie then pay tax so liabilities.
| Is This Answer Correct ? | 10 Yes | 1 No |
Answer / thabo modukanele
It depends, when you purchase goods you pay vat input and
when you sell goods you charge vat output which does not
really belong to you as the seller therefore is a liability
which is payable to SARS.As for vat input is an assets in a
case that you are still going to claim it from SARS.
| Is This Answer Correct ? | 7 Yes | 2 No |
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