How VAT is built up

Hi,

Thanks for contacting Clear Books support.

You can set up your VAT scheme on the Settings>Organisation>Tax>manage VAT schemes menu.

http://www.clearbooks.co.uk/support/guides/vat-2/setting-up-vat-rates/

On the invoice VAT accounting scheme all VAT amounts from transactions build up in the VAT control account.

On the cash accounting VAT scheme all VAT amounts from transactions will initially build up in the VAT cash control account. Once payment is allocated, the appropriate amount of VAT will automatically transfer to the 'VAT control' account via a journal created by the system.

All the best,

Vanish