<html><head></head><body><div class="yahoo-style-wrap" style="font-family:Helvetica Neue, Helvetica, Arial, sans-serif;font-size:16px;"><div dir="ltr" data-setdir="false">The user manual says:</div><div dir="ltr" data-setdir="false"><br></div><div dir="ltr" data-setdir="false"><div><p style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;">You can turn an expense/income category into a VAT category, which means that it receives all the splits that actually make up the VAT payment towards the government. You can also enter a specific percentage rate.</p><p style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;">Categories can be assigned a VAT category, which allows <span class="ydpb265a39aapplication">KMyMoney</span> to split a transaction for a category into two parts, one for the category and one for the VAT. Depending on the setting of the gross/net amount switch, the amount you enter for the transaction is the gross or net amount.</p><p style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;">Example: In Germany, there are three VAT percentages (0%, 7%, and 19%). So I have a main category "VAT paid" and three subcategories, one for each percentage rate. I create these on both the income and the expense sides so that I have six categories in total. For the goods I buy, I select one of the above mentioned categories as the "VAT category assignment".</p><p style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;">When I buy goods, I enter them into a transaction. Let's assume I have selected the gross amount entry method, once I enter the category and amount, <span class="ydpb265a39aapplication">KMyMoney</span> will recognize that there's a VAT assignment and calculate the VAT part, create a second split with the VAT account and VAT amount and reduce the category amount.</p><div style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;">The same applies to income categories but the other way around. Hope that makes sense.</div></div><div style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;">-----------------------------------------------------------------------------------------</div><div style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;" dir="ltr" data-setdir="false">unfortunately no...</div><div style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;">------------------------------------------------------------------------------------------</div><div style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;" dir="ltr" data-setdir="false">I have no idea what this means and in the edit account dialog what I do for each of the two check boxes.</div><div style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;" dir="ltr" data-setdir="false"><br></div><div style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;" dir="ltr" data-setdir="false">I am assuming this is a sales tax?</div><div style="text-align: justify; font-family: sans-serif; color: rgb(33, 37, 41); font-size: 16px;" dir="ltr" data-setdir="false">Aaron</div><br></div></div></body></html>