My mobile phone contract with O2 comes through a partner reseller. I get a monthly invoice from O2, and also a £3 credit ‘discount’ from the reseller which show up separately in my bank account.
I have always struggled for the right way to record this. I am currently showing the £3 discounts as an invoiced item, but it throws my invoicing numbers out. And I also find every VAT return is a problem.
Related is that the latest VAT return wants to include 2 of these payments which were from 2019, and should therefore be locked. I’d really appreciate some help as I fight with this every VAT return.