I am having to put through a number of refunds but wanted to ensure that they were accounted for correctly on our UK VAT return. Payment for these is made with a card so shown as a merchant sale but we then refund the individual with a bacs payment to the customer. Any advice much welcomed.
Chris
Vat is worked out from invoices (what ever vat basis) payment modes not relevant
Hi @chorne39,
As @FaradayKeynes mentioned above, you will need to raise credit notes for these refunds. The credit notes is what the VAT return will look at
Hi Beth thanks for your comments. As far as I can see there is a limitation on the way QF which others have highlighted on refunds. I would like to be able to tag a bacs payment from my bank feed with a credit note. I don’t think this is possible at the moment but others have raised it as a limitation.
Hi @chorne39,
If you create the credit note against the invoice, and then chose the option to refund and specify the bank. This will create a bank entry - you will just need to delete the original entry that may have been brought in by your feed/bank statement
This topic was automatically closed after 7 days. New replies are no longer allowed.