Good afternoon,
why in the balance sheet, in the part regarding VAT to the state, we only account for the VAT of february and march? Why dont we also take into consideration January?
Hello Mariana,
I believe the explanation I gave in the previous question already helps clarify this point. But to summarise: in the balance sheet, you record VAT payable — that is, the VAT related to a given period that has not yet been paid, since the payment term is two months.
In March, you already paid the VAT corresponding to January (as VAT is always paid two months later). Therefore, this amount is no longer a liability. However, you still have a liability for the VAT from February and March, since these amounts have not yet been paid to the State — they will be paid in April and May, respectively. Thus, you have to include them under VAT payable.
Hope it helps!
Madalena Paiva
I believe the explanation I gave in the previous question already helps clarify this point. But to summarise: in the balance sheet, you record VAT payable — that is, the VAT related to a given period that has not yet been paid, since the payment term is two months.
In March, you already paid the VAT corresponding to January (as VAT is always paid two months later). Therefore, this amount is no longer a liability. However, you still have a liability for the VAT from February and March, since these amounts have not yet been paid to the State — they will be paid in April and May, respectively. Thus, you have to include them under VAT payable.
Hope it helps!
Madalena Paiva