@Abeiku my understanding is that tax code for Ghana to be used on Sales is working fine.
The issue is with Purchases side where you are being charged 2.5% but 0% is recoverable.
It’s similar how Flat rate works in UK and other countries where you are charging customer 20% VAT but government is going to collect from you reduced rate - e.g. 3% VAT. So that difference goes to income account rather than balance sheet account.
On Purchases side in Ghana it’s exactly the same except the rate you can recover is 0%.
The issue is that purchase tax code in Ghana requires 3 tax components and flat rate concept is not supported on multi-rate tax codes. But if I add this, then this scenario would be fully supported.
Is this all correct?