First VAT Entry
Learn how to create your first VAT entry in bVAT. This guide covers both Input VAT (purchases) and Output VAT (sales) entries with step-by-step instructions.
Introduction
Creating VAT entries is the core function of bVAT. Each entry represents a transaction that affects your VAT calculations. There are two main types of VAT entries:
Input VAT is the VAT you pay when you purchase goods or services for your business. This is VAT that you can typically claim back from the tax authorities.
Common Examples:
- Office supplies and equipment
- Professional services (accounting, legal)
- Business travel expenses
- Raw materials for manufacturing
- Utilities and rent
Output VAT is the VAT you charge your customers when you sell goods or services. This is VAT that you must remit to the tax authorities.
Common Examples:
- Sales of products
- Service fees charged to clients
- Consulting services
- Rental income (if applicable)
- Online sales
Creating an Input VAT Entry
1Navigate to Input VAT
From the main dashboard, click on "VAT" in the navigation menu, then select "Input VAT" or go directly to /vat/input.
2Click Add Entry
Click the "Add Entry" or "+ New Entry" button to open the Input VAT form.
3Fill in Invoice Details
- Invoice Date: Select the date of the invoice
- Invoice Number: Enter the invoice number from your supplier
- Vendor Name: Enter the name of the supplier or vendor
- Vendor TIN: Enter the vendor's Tax Identification Number (optional but recommended)
4Enter Financial Information
- Product Total: Enter the amount excluding VAT (net amount)
- VAT Amount: Enter the VAT amount (or let the system calculate it)
- VAT Rate Code: Select the appropriate VAT rate (STD10 for 10%, REDUCED5 for 5%)
5Add Additional Details (Optional)
- Purchase Location: Select where the purchase was made
- Purchase Class: Categorize the purchase type
- Is Food: Check if this is a food-related purchase
- Notes: Add any additional notes or descriptions
- Invoice Attachment: Upload a copy of the invoice (recommended)
6Save Your Entry
Click "Save" or "Create Entry" to save your Input VAT entry. The entry will appear in your Input VAT list immediately.
Creating an Output VAT Entry
1Navigate to Output VAT
From the main dashboard, click on "VAT" in the navigation menu, then select "Output VAT" or go directly to /vat/output.
2Click Add Entry
Click the "Add Entry" or "+ New Entry" button to open the Output VAT form.
3Fill in Invoice Details
- Invoice Date: Select the date you issued the invoice
- Invoice Number: Enter your invoice number
- Customer Name: Enter the name of your customer
- Customer TIN: Enter the customer's Tax Identification Number (if applicable)
4Enter Financial Information
- Product Total: Enter the amount excluding VAT (net amount)
- VAT Amount: Enter the VAT amount you charged
- VAT Rate Code: Select the appropriate VAT rate (STD10 for 10%, REDUCED5 for 5%)
5Add Additional Details (Optional)
- Sale Location: Select where the sale was made
- Sale Class: Categorize the sale type
- Notes: Add any additional notes or descriptions
- Invoice Attachment: Upload a copy of the invoice (recommended)
6Save Your Entry
Click "Save" or "Create Entry" to save your Output VAT entry. The entry will appear in your Output VAT list immediately.
Tips & Best Practices
- Always attach invoices or receipts when available - this helps with audits and record-keeping
- Enter invoice numbers accurately - they're used for tracking and reporting
- Use consistent vendor/customer names to make reporting easier
- Add notes for any special circumstances or important details
- Review entries before saving to ensure accuracy
- STD10 (10%): Standard VAT rate for most goods and services in the Bahamas
- REDUCED5 (5%): Reduced rate for specific categories (check local regulations)
- If unsure, consult with your accountant or tax advisor
- You can change the VAT rate later if needed
- Enter amounts in your base currency (default is typically set in account settings)
- The system automatically calculates totals when you enter net amounts and VAT rates
- You can edit or delete entries later if you make a mistake
- Use the bulk import feature if you have many entries to add at once
Common Issues & Troubleshooting
I can't see the VAT menu
Make sure you're logged in and have completed the account setup. If you still don't see it, check that you have the appropriate permissions for your tenant.
The VAT amount doesn't calculate correctly
Check that you've selected the correct VAT rate code. The system calculates VAT based on the rate you select. If you need to enter a custom amount, you can override the calculation.
I can't upload an invoice attachment
Check that the file size is within limits (typically 10MB). Supported formats include PDF, JPG, PNG. If issues persist, try a different file or contact support.
I entered the wrong date - can I change it?
Yes! You can edit any entry by clicking on it in the list and selecting "Edit". Make your changes and save.
What if I don't have an invoice number?
You can use a reference number, receipt number, or create your own identifier. Just be consistent so you can track the entry later.
- Continue adding more entries to build your transaction history
- Review your entries in the VAT lists to ensure accuracy
- Explore the Reports section to see how your entries are used in VAT returns
- Learn about VAT rates to ensure you're using the correct rates
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