VAT on Cash Accounting in WinMentor — Correct Configuration Guide (2026)
VAT on Cash Accounting in WinMentor: eligibility criteria, configuration steps, managing mixed regimes, and D300 statutory reporting.
Bogdan Minoiu — Founder Azuvio · 2026-05-23 · 8 min · ERP & Operations
What is «VAT on Cash Accounting»
An optional VAT regime: VAT becomes due when the invoice is collected, not when it is issued. This provides a cash-flow advantage for companies with long payment terms from clients. It is available under a specific turnover threshold (verify the current ANAF (the Romanian tax authority) threshold, in 2026 ~4,500,000 RON / ~900,000 EUR).
How to configure in WinMentor
1. Company Settings → VAT Parameters.
2. Check «VAT on Cash Accounting» + enter the regime start date.
3. VAT Ledger Settings → configure the due VAT ledger (separate from the standard VAT ledger).
4. Dedicated General Ledger account: 4428 «Non-due VAT» (for issued but yet unpaid invoices).
How it works in practice
When issuing a sales invoice:
Entry: 4111 «Customers» = 707 «Sales» + 4428 «Non-due VAT» (instead of 4427 «Collected VAT»).
Upon payment collection:
Entry: 5121 «Bank» = 4111 «Customers» + transfer 4428 → 4427 «Collected VAT».
WinMentor automates this transfer once the invoice is marked as paid.
Mixed Regime (Warning!)
If you have invoices issued BEFORE entering the VAT on Cash regime, those remain under the standard regime. WinMentor manages them separately provided the regime start date is correctly recorded.
D300 Statutory Reporting
The non-due VAT ledger tracks sums in 4428 at month-end. For the D300 (VAT Return), you report ONLY account 4427 (VAT actually collected on payments).
Potential Pitfalls
1. Exceeding the turnover threshold → you automatically exit the regime. You must record the exit date in WinMentor and reconfigure the ledgers.
2. Cancelling an unpaid invoice → pay close attention to the reversal of account 4428.
3. Advances received → VAT becomes due upon the receipt of the advance, regardless of whether the final invoice is collected.
Conclusion
VAT on Cash Accounting = a real cash-flow benefit for eligible companies, but it requires careful configuration in WinMentor and accounting discipline regarding ledger regimes. Consult with your accountant to see if it is the right choice for your business.