Why Journal Vouchers Cannot Accept Tax Entries Assigned

1.   WHY IS GST/VAT ON JOURNAL ENTRIES DISALLOWED?

To claim back the input taxes on your bills, you will need a valid tax invoice from your supplier, evidencing that output tax has been booked by them. In most cases, journal entries (for accruals) do not possess such a tax invoice, and therefore not valid for tax claims. See IRAS guideline on this:

NOTE: If you have a tax invoice, then these should be booked in under Cash Book or Payables.

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