Restaurant
VAT Input Tax on Ingredient Purchase
Recording the recoverable 16% VAT paid on a food supply invoice from a registered vendor.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Food & Beverage Inventory | Asset (+) | 1,000.00 | - |
| VAT Input Tax (16%) | Asset (+) | 160.00 | - |
| Accounts Payable (Supplier) | Liability (+) | - | 1,160.00 |
💡 Accountant's Note
The VAT paid to a VAT-registered supplier is a recoverable asset. It is deducted from the VAT you collected from customers when filing the monthly return.
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