VAT Manual Adjustments and Journalling

Hi, I had to make an adjustment to a VAT return to includes sales made after we deregistered for VAT. This journalled the amount to the 2204 (Manual Adjustments), which I manually journalled to 2200 (Sales Tax Control).

We since re-registered for VAT and HMRC advised us to submit a form 652 to have the VAT repaid so it can be accounted for in the next return. When they repayment is made, I’m unsure as to where to journal it. Would the following be correct?

2204 Manual Adjustments Debit £xxx
2200 Sales Tax Control Credit £xxx

2204 Manual Adjustents Credit £xxx
2202 VAT Liability Debit £xxx

Hi @Meeko

You would probably be best to double-check this with your accountant. As I am not a qualified accountant I wouldn’t like to give you the wrong advice

Hi Beth,

Thanks will do!

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