How do I account for a VAT refund?

Accounting
1

I have received a VAT refund. How do I account for the transaction to keep my bank account balanced.

2

A refund from HMRC, in the sense that you submitted a return where you claim more in purchase VAT than you owe in sales VAT? In that case you can just tag the transaction as a tax refund and select VAT - when you submitted the return it left your “VAT liability” nominal code showing as an asset, and tagging as a vat refund will return that nominal to zero.

3

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