[Question] where to capture VAT refund?

[SilverNodashi]

Hi,

Quick question, in which "chart of accounts" / "set of books" does one normally capture a SARS VAT refund? And what would it be classified as? Would it be seen as revenue, or "what"?

P.S. I did try and search, but the forums can't find "VAT"

[SilverNodashi]

I use XERO accounting, due to it's integration with our Woocommerce website. It works very similar to Quickbooks, if that helps at all?

[EAB]

You need to allocate the refund to the VAT control account, the same as with VAT payments.

[SilverNodashi]

Hi Werner_E,

Thank you. So, would it be considered a "credit note", or how else (apart from using journal accounts), would I enter it, since I didn't issue an invoice either.

[Mike C]

Not sure about your accounting program, but on mine I enter it via the cash book when it reflects as paid in or out on my bank statement.

[EAB]

As Mike C said, you enter it directly via the cash book.

When you receive the refund form SARS, and you update your bankstatements in the cashbook you allocate it to the control account

[SilverNodashi]

Not sure about your accounting program, but on mine I enter it via the cash book when it reflects as paid in or out on my bank statement.

Thanx that was a good tip so I ended up capturing it when doing recon.