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What Entry Type should I use for my Cash Flow entries?
What Entry Type should I use for my Cash Flow entries?

Refer to this article to understand the different income and expense entry types for a VAT-paying entity.

Melanie avatar
Written by Melanie
Updated over a week ago

I am a VAT Tax Payer and I am uploading my income and expense into Taxumo. What Entry Type should I use for my Cash Flow entries?

When entering an income entry in Taxumo for a VAT Company, select the following entry type if:

  • VATable Sale - Choose this option if 12% VAT is included in the income that you are recording for an income entry.  If you're at all unsure, the safe bet is to assume your income is subject to VAT.

  • Zero Rated VAT Sale - Choose this option if you have issued a VAT Invoice or Official Receipt for Zero-Rated (0% VAT) Transaction. You can learn more about zero-rated VAT here.

  • VAT Exempt Sale - Choose this option if you have issued a VAT Invoice or Official Receipt to a VAT-exempt transaction. You can learn more about VAT Exempt sales here.

  • Mixed Entry - Choose this option if your income contains VATable Sale, Zero-Rated VAT Sale, and VAT Exempt Sale in a receipt.

  • Sales to Government - Choose this option if the income entry was acquired from a sale to the government. Government entities usually allow a different tax rate to be applied.

As for expense entries, you can normally refer to how taxes are broken down in the receipt. To explain further:

  • VATable Purchase - Choose this option if 12% VAT is included in the expense that you are recording for an expense entry.

  • Zero Rated VAT Purchase - This is used for purchases that use a zero rated VAT rate.

  • VAT Exempt Purchase - If your purchase is VAT Exempt, choose this option.

  • Mixed Entry - Choose this option if your expense contains VATable sale, Zero-Rated VAT Sale, and VAT Exempt Sale in a receipt.

  • Not Qualified for Input VAT - If your purchase comes from a supplier that is not a VAT entity, choose this option.

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