Nornally we pay VAT to inland revenue but as i purchase an equipment we need to claim it back from them. so we got a refund. how do we enter in quickbooks?

Hi there, @sanjay7.

It's my pleasure to have you here on the Community page. I'm glad to walk you through the steps on how to record a VAT refund in QuickBooks Online.

If you've filed the return within QuickBooks and the system had marked it as filed in the Taxes section, you can record the refund from there.

Here's how:

1. Go to Taxes and click on the arrow next to View Return for the specific VAT period you need.
2. Select Record Refund.
3. At the top, select the bank account the refund has gone into.
4. Make sure you've selected Refund under Payment Type.
5. Enter the Refund date and amount.
6. Add a memo if needed.
7. Click Save.

This will then record the payment as being a refund to the bank account you selected. 

For additional steps about recording VAT payment or refund, you may check out this article.

Also, I recommend checking out this link for more tips about managing VAT in QuickBooks Online: Set up and edit VAT settings, VAT codes, and VAT rates.

Please let me know in the comment section if you have any follow-up questions about QuickBooks or taxes. I'm always here to answer them. Take care and enjoy the rest of the day!