?How you enter VAT in the system of accounting ?what are the double entry for it in all case

VAT is processed in the books of seller and buyer as follows

IN CASE OF SALES 

D.CASH/BANK

C.VAT

C.SALES

IN CASE OF purchases

D.PURCHASES

D.VAT

C.CASH/BANK 

IN CASE OF VAT PAYEMENT

D.VAT

C.C

VAT - Value added Tax is a liability arises at the time of Selling a GOODS or a PRODUCT. This has to be remitted to the VAT Department. Similarly VAT at the time of purchases of a GOODS or PRODUCT can be claimed as eligible Input Credit. This credit is adjusted against the output tax liability and balance of the tax is remitted.

to be precise

VAT on SALE is Liability & VAT on Purchase is ASSET. NET of both if Liability is more, we have to remit it. If Asset is more, it can be carried forward and utilized in future against the Liability

Accounting treatment in the case of DOUBLE ENTRY SYSTEM

VAT Group to be created under the head "DUTIES & TAXES" under Current Liabilities 

Under VAT Group - VAT Input Credit & VAT Output tax" Ledgers to be created

Entry to be passed at the time of Sale:

Debit Customer Account Ledger

Credit Income Account Ledger

Credit VAT Output Tax Account Ledger

Entry to be passed at the time of Purchase:

Debit Purchases Account Ledger

Debit VAT Input Credit Account Ledger

Credit Creditors Account Ledger

Adjustment of Input Credit against Output Tax Liability:

Debit VAT Output Tax Account Ledger

Credit VAT Input Credit Account Ledger 

NOTE: IF VAT Input Credit is more, then the excess amount after adjusting the TAX Liability can be carried forward and utilized against future liability

Entry to be passed at the time of payment of TAX Liability:

Debit VAT Output Tax Account Ledger

Credit Bank Account

Recevable is dabit

                       Sale is credit

                        Sale tax is credit

There are several ways of recording Vat . It mainly  depends on the accounting system set up.

On a basic accounting:

For Vat on sales

Dr. Bank / Cash/ Receivable

Cr. Sales (net of Vat)

Cr. VAT (Output tax account)

For Vat on purchases

Dr. Purchases account (net of Vat)

Dr. Input tax account[Vat]

 Cr. Bank [Gross amount=Purchases+Vat]

At the end of the accounting period , offset input tax account and ouptut tax account.

The resulting figure , if ouptut tax is more than input tax , pay the difference to tax authority. For vice versa, it depends on tax laws of the area of operation