How do account for vat returns? Should I set up a client and create a invoice, but it is not part of sales.

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Questions VAT Returns:

How do account for vat returns? Should I set up a client and create a invoice, but it is not part of sales.

  1. Peter Connor October 6, 2014
    Hi Ron,

    What exactly do you mean? As in how do I add VAT to an invoice?
  2. Ron Rossiter October 6, 2014
    Thanks Peter. I received a VAT refund and I needed to know how to account for it. It is not part of sales so it does not get an invoice. How do I account for it without showing the transaction in moneyin/sales affecting my sales ledger.

    ron

1 answer

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Peter Connor ⋅ Staff October 6, 2014
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Hi Ron,
VAT refunds are reflected via journal entry. If you go to My Company > Manual Journal Entries > New Journal Entry.
Reason “VAT refund” > Account: Bank Account > Debit say €1,000
Go to the next line : Account: VAT > Credit €1000
Review > Save
I hope this makes sense.
Pete
You can learn more abou vat refunds here and here 
Thanks
Pete

#answer-849

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