Hi, I'm doing the bookkeeping for a pub (their accountant wants to file their vat returns) the business started in May 2012 so they are a bit behind. The first vat quarter has been done but I'm having to put everything for the whole year into VT and the 1st vat return is going to be re-done (by new accountant) as well as the next 3 quarters. I know that they paid the 1st vat 1/4 and then they got a refund, please can you tell me how to post the refund on VT? Do I need to post a journal? if I do please can you tell me the entries I need to make?
Normally the software would have created a net VAT due figure as an Asset as part of creation of the VAT return.
When the VAT is repaid you simply
Dr Bank
Cr Net VAT due.
In your case you are going through you will have the VAT that was repaid may not match your recalculated VAT meaning that you may carry a Cr/Dr value in the net VAT due which will need to be adjusted out in the latest return (or an earlier return if they have not previously been filed).
So basically, you adjust the box (1) or (4) figure to sort out the VAT discrepancy by journalling within the affected period a VAT only payment or receipt so that the VAT return will be correct. (yours will be a payment).
Basically treat the same as you would a discovered VAT error in a prior return.
Not that you are going to, but remember that with VT if you make a mistake with the Journal you can just delete the VAT return, redo the journal and then do the VAT return again... Just avoid doing that after issueing a return as the VT documentation warns that sometimes recreating the exact figures of the previous return can be problematic. (personally I've never encountered that problem).
Hope that helps,
kind regards,
Shaun.
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Shaun
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