VAT refund for non UK Resident after invoice locked

[lynda]

We have 2 customers who have returned their signed VAT refund forms having left the UK but their invoices are already locked as they are on previous returns so I can’t change the VAT on that. If I issue a credit note it doesn’t allow the total to be the VAT. I also can’t issue an invoice for a negative amount. How do I claim the VAT back ?

[QFMathew]

Hi @lynda

If you’re refunding just the VAT, a credit note should work fine. What you would need to do is add an additional line to the credit note which would equal the net cost with 0% VAT.

For example, I have an invoice for £282.40 with £47.07 VAT, and I’m going to credit just the VAT element of this.

So, to start, I would go to More Options >> Credit Note, which loads this:

To single out just the VAT, I would then add another line with the same unit cost and quantity, but 0% VAT, which leaves just the VAT on the credit note:

As far as accounting for a refund of just the VAT is concerned, this is how it would be done within QuickFile. What I can’t tell you however, is whether this would need to be treated in a particular way on your VAT return. I would suggest checking this with your accountant before filing anything, just to be on the safe side.

I hope this helps!

[lynda]

Great - thanks - makes sense now