1 answer

Brendan_Brady Community Accountant - Brady Associates June 30, 2014

Hi Kieran
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.

  1. Peter Connor July 1, 2014
    Tks Bren.
  2. kieran@timmons.net July 1, 2014
    Thanks Brendan,
    I've shown a credit to bank account and debit to VAT for the same amount.
    I presume this is OK.
  3. Brendan_Brady July 1, 2014
    Kieran, this should be the other way around. Debit bank because your bank balance which is an asset is increasing and credit VAT because the refund that you were owed is reducing.

    Just to confirm, this is a VAT refund from revenue?
  4. kieran@timmons.net July 1, 2014
    Thanks Brendan,
    Yes it is a refund. I've changed that around.
    Many thanks again
  5. Brendan_Brady July 1, 2014
    No problem.

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