Input VAT Ledger - Kenya

Input VAT ledgers are required to account for input credit on Goods/Services purchased.

Input VAT Ledger

To create an Input VAT Ledger,

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

• Enter the Name of the Input VAT ledger.

• Select Duties & Taxes as the group name in the Under field.

• Select VAT from the Type of Duty/Tax list in the field Type of Duty/Tax.

• In VAT Sub Type field select the appropriate VAT Sub Type - Input VAT (to account for  input credit on  Purchases. Depending on the VAT Sub Type selected, Tally.ERP 9 will display the VAT/Tax Class for selection in VAT/Tax Class field. For Example, if Input VAT is selected as VAT Sub Type, application will display only the Input VAT Classifications for selection in VAT/ Tax Class field.

• In VAT/Tax Class field select the required VAT/Tax Class from the VAT/TAX Class list.

• The Percentage of Calculation and Method of Calculation is set as per the VAT/Tax Class selected.

• Accept the input VAT ledger.

Note: It is recommended that Input VAT Ledgers be created with appropriate VAT classifications for different rates of VAT.