My system shows the following 3 nominal codes for VAT:
2200 Sales Tax Control Account
2201 Purchase Tax Control Account
2202 VAT Liability
Surely, VAT liabiity = Sales Tax - Purchase Tax, so why have a seperate code for VAT Liability?
Secondly, code 2202 shows a sum which is not equal to Sales Tax - Purchase Tax. So where has this number come from?
Any help greatly appreciated!