We are automotive sole distributors, How to record warranty pair with car

Question

When we sale cars, there are obligations arises from this transaction, which is warranty.

And how to avoid pay Vat if we recorded as sales

Answer 1

This may help?

http://***.accountantanswer.***/7/warranty-given-on-products-sold?show=7#q7

Answer 2

How to record warranty obligations? It is well explained in the below link!

*****://accountinginfocus.***/financial-accounting/liabilities-financial-accounting/recording-warranty-expenses-and-liabilities/