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Thread: Income Tax Refund Received

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    Income Tax Refund Received

    Hi

    We have received a income tax refund from SARS.
    What are the journal entries to capture the refund?

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    Platinum Member Marq's Avatar
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    Your original recording of the net of the tax calculation entry would have been :-
    Dr - SARS
    Cr - Income Tax account.

    Now you have received the cash so its:-
    Dr - Cash
    Cr - SARS
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    Well our accountant didn't give me any information about our IT and I have to know do journals to capture it

    The income tax account is that the "expense acc" Or "current Liability" account I must CR
    SARS account I am assuming you mean the Vat Control Acc 9500/000 ???

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    Platinum Member Marq's Avatar
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    Income Tax is different to VAT. Your first post mentions income tax refund - this is different to a VAT refund. If it is a VAT refund then it is the VAT Control Acc.
    I would suggest you ask your accountant for the entries and that he help you through what should be done.
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