How are VAT codes applied to Quick Cashbook Deposits and Withdrawals?

Quick Cashbook Deposits and Withdrawals are the only cashbook document types that carry VAT codes. iplicit applies VAT direction automatically based on whether the transaction is money in or money out.

VAT direction rules

• Deposit (money in) — treated as Output VAT, the same direction as a sale.
• Withdrawal (money out) — treated as Input VAT, the same direction as a purchase.

These directions are fixed and cannot be changed on the transaction.

Payments and Receipts

Transactions entered through the Payment or Receipt modules are set to 'Not Applicable' for VAT. These document types do not support VAT coding — only Quick Cashbook Deposits and Withdrawals do.

Purchase refunds entered as deposits

A purchase refund entered as a Quick Cashbook Deposit is treated as Output VAT, because iplicit treats all deposits as money in. If the refund needs to be recorded as Input VAT, enter a tax-only manual journal to correct the VAT direction.