VAT report

Taxes in FA are calculated depending on item tax group selected for given item. So in your case you have to define two item tax groups: VAT 20% and VAT 0% (exempt), and select them for bar and water  definitions respectively in Items catalogue. Then on every purchase/sales the right VAT records will be inserted in VAT register.
Janusz

I'm asking the question again

When I do a "bank payment", how does FA guess which VAT rate is applied.
I'm not speaking of buying/selling Items which indeeds have a Tax configuration but just normal payment, where I split manually the payment in like "Office stationary" account and a "VAT account".

My problem is when I do a VAT inquiry, the VAT told by the report never match the corresponding VAT GL account.

Hi Joe

That's what I do, my question how FA knows which rate/amount to use in the Tax inquiry.

For example, let say I buy something for $100 with 20% of VAT.
I enter the following payment
100 -> Stationary
20 -> Tax

total $120.
Everything is fine, the Tax inquiry will tell me net $100, tax $20.

Let's imagine know that I made a mistake and I entered 120 instead of 100
so
120 -> Stationary
20 -> Tax (20%)

What will the tax inquiry tell me ?
1 - Net 120, tax 20 
2 - Net 100 , tax 20
3 Net 120, tax 24 ?

why ?

I see , so if I mix different VAT type in the same payment, everything should be fine, as long as the VAT amount are correct.

The problem with calculated the amount backward, is,  how can I enter 0-VAT transaction (via a payment).
I know I can create an Item with the approriate Tax type, but I still mean with direct payment.
In the UK some item are either 0-VAT or not subject to VAT, but they need to be included in the VAT return.
If I could enter the net amount, instead of the tax amount, in the payment, that would work even for a 0 rate tax, and then be used in the report.

What can I do then ?

I'm afraid I have to do that, but that mean I can't use anymore direct payment (and so quick entries, etc) which where very handy ...

Thanks anyway
/Elax