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Non Deductible VAT added back to expense account
Hello all,
We are facing an issue regarding a Non deductible VAT.
A subsidiary which its business is under educational services, cannot claim the Input VAT in purchase transactions each month. Although, the Input VAT needs to be added back to the expense / item cost of the transaction.
Although from the standard setup of the tax codes, a specific Non-Deductible Expense Account needs to be set in the tax code (Please refer to attachments). A specific non-deductible expense account cannot be applied, as the tax authorities requires for the Non-Deductible VAT to be posted back to expense account / item cost of the transaction.
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