Your browser does not support JavaScript!

VAT

20. Sep 2012
1

We have several analytical accounts for VAT payments – some of them show receivables and the others show payables to tax authorities. In CZ statutory accounting it has to be reported cumulatively – asset or liability side based on actual balance. How should it be reported from US GAAP point of view?

Submitted by Mladek on Thu, 09/20/2012 - 08:07
Since the US does not have a VAT, US GAAP does not directly deal with this issue. However, since VAT receivable and VAT payable are not really two separate economic items (at any given time one either owes VAT to the government, or is owed a VAT refund from the government) reporting "net VAT" as either an asset or a liability would be proper even if the entiry used two separate accounts.

Add new comment