Hi
I have invoiced a client at 20% VAT but it turns out i should have been charging 5% so i need to refund the cleint the difference - however the vat ive collected has already been submitted on my last return
I cant just create a purchase for this as only no vat 5% and 20% are options but the entire transaction would a be vat refund that would need to be logged (re-claimed) against my next vat return
How do i go about creating this transaction (FYI the original transactions were spread over 4 invoices to the client)
If you create a new invoice with two lines, one for the original net at 5% VAT and the other for minus the original net at 20% VAT, that should leave you with an ad-hoc credit note with a zero net and “15%” VAT refund. When you create a credit note like this and select the bank account to refund from, it will create a pre-tagged transaction on the bank, so if you then get the same transaction pulled in later from a bank feed you’ll have to delete the untagged duplicate transaction.
A VAT only sales credit note, for the over-charged VAT.
@NigelMoysey what I described in my post is the way to achieve that in QuickFile - I don’t think it lets you create a single invoice line with zero net and non-zero VAT so you have to use the two lines positive and negative workaround.
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Thank you both for your assistance
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