Hi, I'm battling to grasp the processing of these as well as their position in the accounting equation.
Input VAT is paid to Suppliers.
It's an Asset and is processed as a Debit on the General Journal.
Output VAT is received from Customers.
It's a Liability and is processed as a Credit on the General Journal.
Is that correct?
Grateful for any help in clarifying this conundrum for me!