Input & Output VAT

[greghsa]

I'd put it slightly differently - and I think this is a closer starting point:

The point of view for your input and output VAT accounts is your liability to SARS i.r.o. VAT - not the client or supplier.

For example, with a supplier you've incurred a liability of R50.00 for goods or services purchased and R7.00 for the VAT. You need to claim that VAT back from SARS, hence it's an asset.

The exact reverse applies when you're talking about invoices to clients. The VAT you collect from the client is owed to SARS, hence it's a liability.

LAYMENS Terms Thanks Dave.