Recoverable VAT Balance
Code: 1175
👁 Views: 241
Account Information
| Financial Statement | Statement of Financial Position |
| Normal Balance | Debit |
Definition
Represents the net VAT balance in the company’s favour after input VAT is settled against output VAT for the tax period. It is used to present the amount recoverable or carried forward under the applicable tax rules. Input VAT on purchase invoices is recorded during the period in VAT on Purchases (2172) and is not recorded in this account a second time.
Common Journal Entries
Receipt of the recoverable VAT balance
Dr. Bank Account
Cr. Recoverable VAT Balance
Transfer the net debit balance after settling input and output VAT
Dr. Recoverable VAT Balance
Cr. VAT Settlement
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 1
Presentation of Financial Statements
US GAAP
ASC 210
Balance Sheet
❓ Frequently Asked Questions
Q: What is recoverable input VAT?
A: VAT paid on purchases that the company is entitled to recover from the tax authority.