Post by MS INYOFU (@theconscience)

HINT: Separate VAT from sales revenue.

Explanation: VAT collected belongs to the government, not the business.

Example: Product sold N100,000 + 7.5% VAT. Total N107,500.
Debit Bank N107,500
Credit Sales N100,000
Credit VAT Payable N7,500

Scenario: Some accountants record the full amount as revenue and struggle to pay VAT later.

Question: Do you track VAT monthly?

0 likes · 0 comments · 0 shares