Indirect TAX

mazinynyb
mazinynyb Registered Posts: 5 Regular contributor ⭐
in General student discussion
Good Day...

I want to know why in this question the answer is Increase VAT payable (((( A credit note for taxable supplies that has been received from a supplier is being processed.))) . I know the VAT for purchase Decrease VAT payable...

Purchase
VAT

Creditor


I wait reply

Regards

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  • coojee
    coojee Registered Posts: 792 Epic contributor 🐘
    mazinynyb wrote: »
    Good Day...

    I want to know why in this question the answer is Increase VAT payable (((( A credit note for taxable supplies that has been received from a supplier is being processed.))) . I know the VAT for purchase Decrease VAT payable...

    Purchase
    VAT

    Creditor


    I wait reply

    Regards

    You know that VAT on purchases decreases VAT payable so it follows that VAT on purchase returns must increase VAT payable as it's the opposite of a purchase.

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