Banking and reconciliation

Recording a VAT payment to the Tax Authority

When you pay the Tax Authority your VAT liability, you need to record it to reduce your VAT liability on your balance sheet.

Step-by-step instructions

Assume you've made a payment of SAR 10,000 for your VAT liability to the Tax Authority. To record this payment:

  1. Go to Bank Accounts on the left side menu.
  2. Click on Transactions on the bank account you made the payment from.
  3. On the transactions sheet in a new row, enter the following:
  • The Date you made the payment.
  • A Description, for example, "VAT payment for Jan-Mar 2022".
  • The Amount paid. Make sure you enter the amount as a negative, i.e. -10,000, since this is money leaving the account.
  • Under Classify to account, choose VAT.

VAT is a system account

The VAT account is the system account that Wafeq uses to keep track of your VAT.