Non-Profit
Purchase — VAT Exempt Status (No Reclaim)
Recording a purchase where the NGO cannot reclaim VAT due to its exempt status.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Program Expense / Asset (Inclusive of VAT) | Expense (+) | 1,160.00 | - |
| Cash / Accounts Payable | Asset/Liability (-) | - | 1,160.00 |
💡 Accountant's Note
NGOs with tax-exempt status cannot reclaim input VAT. The full amount including VAT is expensed or capitalized. This is different from commercial entities where VAT is a recoverable asset.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.