VAT Account- Expense or Liability

Hello all,
I need to create the VAT account to assign to the Input Tax Code. We do not have AR in SAP, and the offestting of Input and OUtput Taxes (VAT) is done outside of SAP as well. In that case, should this VAT (payable?) be an Expense or a Liability account, or an Asset account?
Your help will be highly appreciated.
Thank you,
Nubha

Thank you both very much for your valuable input.
This is the VAT account that will be debited at the time of Vendor Invoice entry (FB60). It might be such that, the nature of the account (Liabilit/expense or asset) will be based on the activity that is being perfomed?
The set up is for a Mexican company code and right now I only have 3 tax codes assigned to the same GL (expense) account. The 3 codes are all based on the vendor location (border-11%, non border-16%, No VAT- 0%). Maybe there will be events when, at the time of Invoice entry, the VAT account should rather be a liability account?
After all, some of the VAT are recoverable and some parts are not. Just my speculation.
Your thoughts would be welcome.
Thanks again.

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