Lesson 11 of 11 · 3 min

Your sales tax or VAT return

Ledger works each period's return out from your books: close the month, file it with FBR or HMRC, then record it as filed and paid.

Accounts → Tax returns
app.ledger.vereon.tech
Your booksItemsReportsAccountsPayrollImportSettings
Tax returns
Record as filed
…Tax ratesFixed assetsLoansMonth endTax returns
October 2026 · Ready to file · Rs 65,700.00
September 2026 · Filed and paid
August 2026 · Filed and paid
Each month Noor Traders owes FBR the sales tax it charged, less what it paid on its purchases: paid by the 15th, the return filed by the 18th of the next month. Accounts → Tax returns lists every month (every quarter for a VAT-registered UK business) with where its return stands and when it's due.
Sales tax return · October 2026
Ready to file
Tax on sales
Rs 262,800.00
Tax on purchases
Rs 197,100.00
Sales tax withheld by customers
Rs 0.00
This return
Rs 65,700.00
The return is worked out from your books, never typed: tax on sales, less tax on purchases, less any sales tax a customer withheld and paid to FBR for you. Every invoice, bill and journal behind each figure is listed under it. In the UK it's set out as HMRC's nine boxes.
Journal entry
TR-0001 · Sales tax return, October 2026
Account
Debit
Credit
Sales tax payable (output tax)Rs 262,800.00
Sales tax paid (input tax)Rs 197,100.00
Sales tax payable to FBRRs 65,700.00
TotalRs 262,800.00Rs 262,800.00
Debits equal credits
Close the month first (Month end), so the return can't change once it's filed. Then file it with FBR in IRIS yourself (Ledger sends nothing), and press Record as filed with the day and the reference: one entry moves the month's tax into Sales tax payable to FBR.
31 OctoberOctober ends
5 NovemberOctober closed in Month end
15 NovemberPaid to FBR
18 NovemberFiled, and recorded in Ledger
Record the payment from the bank and the return reads Filed and paid. When tax on purchases is more than on sales, the difference goes against the next return, as FBR carries it forward; in the UK HMRC repays it, and you record the refund when it lands. A correction goes in the next return: a filed one is taken back only if its month is reopened.

Try it

Opens Ledger. You'll be asked to sign in first; new businesses get a free week, no card needed.

Open Tax returns

Quick check

2 quick questions. Pick an answer and Ledgy will tell you how you did.

1. October isn't closed yet. Can you record October's return as filed?

YesNo: close October first, so the return can't change

2. October's tax on purchases was more than on sales. What happens in Pakistan?

FBR pays it back at onceThe difference goes against November's return

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