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What is VAT and how does it work? What is the difference between input VAT and output VAT? What VAT records must a business keep? What are the main VAT rates? When must a business register for VAT? How is VAT recorded on a sales invoice in the books? How is VAT recorded on a purchase invoice in the books? How long must VAT records be retained and in what form? What is the difference between zero-rated and exempt supplies? What information must a valid VAT invoice contain?
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Bookkeeping › VAT Records

What is the VAT account (VAT control account)?

Beginner

Answer

The VAT account is the ledger account that records output VAT (credits, from sales) and input VAT (debits, from purchases), plus adjustments. Its balance shows the net VAT owed to (credit balance) or reclaimable from (debit balance) the tax authority, and it is settled when the VAT return is paid.
VAT account: Cr Output VAT 200; Dr Input VAT 80 -> Cr balance 120 payable.
Real-world example At quarter-end the VAT control account balance equals the amount due on the VAT return.

Common follow-ups: What does a credit balance mean? | How is it cleared?

Control Accounts Books of Prime Entry VAT Records
All 25 VAT Records questions