This article covers how VAT direction works on Quick Cashbook Deposits and Withdrawals. These are the only cashbook document types that carry VAT codes – iplicit applies the VAT direction automatically based on whether the transaction is money in or money out, and this direction cannot be changed on the transaction itself.

VAT direction rules for Quick Cashbook Deposits and Withdrawals

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

These directions are fixed on Quick Cashbook Deposits and Withdrawals and cannot be overridden on the transaction.

Why Payments and Receipts don't carry VAT codes

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

Correcting a purchase refund entered as a Quick Cashbook Deposit

A purchase refund entered as a Quick Cashbook Deposit is treated as Output VAT, because iplicit treats all deposits as money in regardless of what they represent. If the refund needs to be recorded as Input VAT instead, enter a tax-only manual journal to correct the VAT direction. See 'How to post a VAT-only invoice' for how to enter a tax-only document.

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