Tax

VAT Audit Penalty (Non-Deductible)

Recording a penalty issued by the ISTD (Jordan) for an error in a previous VAT filing.

Account NameTypeDebit ($)Credit ($)
Tax Penalties & FinesExpense (+)1,000.00-
Cash / ISTD PayableMixed-1,000.00

💡 Accountant's Note

Fines and penalties are business expenses for accounting, but they are 'Non-Deductible' for tax. This means you record the loss now, but you can't use it to lower your income tax bill later.

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