What does VAT liability mean?

article ID: 1004267 

 

The VAT Liability account (2202) is the account that VAT amounts are emptied into, when closing a financial period.


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When closing a financial period, all of the balances on the VAT accounts must be emptied against the VAT liability account 2202. This is something the program does automatically when running the period end procedure.

At the year end there is not to be any balance on any other VAT accounts besides account 2202. The balance on account 2202 will be on the opening balance for the following year.

For more information about this, please consult you accountant.


Query words: VAT, liability