Setting up VAT/GST
To enable VAT/GST support in Moneydance, make sure that the "Use VAT/GST" option is enabled in the General section of the Preferences.
VAT/GST support in Moneydance depends on your configuration of VAT/GST rates for different categories of income or income. To set these rates, select the Tools->VAT/GST Settings menu. This will display a table where you can enter the tax rates for each category of taxable expense or income, as well as the category to which the taxes on the taxable category will be assigned.
Once a category has been assigned a tax rate and tax category, any transactions that have been assigned that category will be split into two parts - the tax part, and the normal income/expense part. The tax part of the transaction will be assigned to the tax category. This splitting of transactions is subject to the "Apply VAT/GST" checkbox in the transaction editor remaining checked.
If you have a large number of transactions that have not been split you can use the Tools->VAT/GST Transactions menu to display all of the transactions to which VAT/GST may apply (according to your settings) so that you can quickly set the rate or tax amount for each one.
Once you have had your VAT/GST settings in place for a while, generating a VAT/GST report can provide useful information about how much you have been paying on VAT/GST and in which categories.