Good Day
I received a notification of assessment from SARS where Pastel was showing a VAT refund and once SARS had completed their audit the notice of assessment said that the company has to now pay in an amount. Payment was made but how do I process this payment on the Tax control account so that it doesn't reflect an even larger refund at the next tax period. My tax period is at end September again so please assist me urgently with this.
You'll first need to establish if input was disallowed because of incorrect invoices of non-claimable amounts.
If it was wrong invoices then you will keep them in the ledger, request correct invoices and claim them in the next VAT period. Your ledger will them balance after submitting the next return
If it was non-claimable amounts, you will have to reverse the VAT portion to the expense you processed. IE, VAT claimed on entertainement, you will then DT entertainment and CT VAT control with the VAT portion disallowed.
I need to CT bank and DT VAT control account against penalties..... However does this journal go with or without VAT
That needs to be without VAT
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