I paid the incorrect supplier and they refunded the monies, how to record this transaction without affecting income/expense and Vat

Hi there, YvonneSmit.

I just wanted to let you know that my peer responded to your other post. In order to keep the conversation streamlined and provide you with the best resolution, I'll ask that you post any follow-ups there. 

Just in case you haven't been notified of the new response, here's the link: https://quickbooks.intuit.com/learn-support/en-us/banking/re-incorrect-deposit-made/01/900113#M64615

Please refer to this article to view various steps on how you enter a supplier credit to record returns to suppliers or refunds from suppliers: How do I handle supplier credits and refunds?.

Let me know if there's anything else I can do for you. I've got your back and am always willing to help. Wishing you all the best!