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!

Kerry