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Bakty
October 31, 2023
Question

Recording VAT Refund received when the received amount is bigger than submitted VAT Return

  • October 31, 2023
  • 1 reply
  • 0 views

Hi,

 

We received a large amount of refund for the VAT. We are supposing it was some interest received. How can we record it in Quick Books?

 

Say we received £165, not £160, as stated in the submitted VAT Return.

When we record £165 VAT Refund and match it in bank account, then there is £5 balance remaining on VAT Centre. If we post £160 as VAT Refund, it won't match the Bank.

 

How can we record a correct VAT Refund amount so that it matches the Bank?

1 reply

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Ashleigh1
October 31, 2023

Hello Bakty, thanks for posting on the Community page, so you would have to record the £165 on the vat refund section next to the filed vat return so you can match it from the banking page.  Although the filed return is £160 only, it would still be right to record 165 on the vat refund section. Because aside from you won't be able to match it to the transaction from the for review, recording it separately as a deposit will show on their P&L report.

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BaktyAuthor
October 31, 2023

Hi Ashleigh,

Thanks for your reply.

 

Does it mean £5 will remain as balance on VAT Centre forever?
Even when we make a journal writing off £5 from 2201 - VAT suspense to interest received, then £5 is still there on VAT Centre. It doesn't look right because it is not a balance left on VAT - it is interest received.

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Ashleigh1
October 31, 2023

Hello Bakty, we would advise you speak to an accountant on this if you want to take off the £5 from the VAT suspense. 

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