• From: Ireland, Cork
  • Registered: 12/10/2015
  • Posts: 25

Topic: VAT Payment and Repayment

Hi,

I am in Ireland.

When I receive a VAT repayment from the Tax office, I put it in Front Accounting as a Journal entry. I Debit the bank account and Credit the VAT account.

It seems to be wrong because FA is showing up this amount in Tax Inquiry.

What is the correct way to put VAT Payment and Repayment to/from the Tax office into FA?

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: VAT Payment and Repayment

Treat the VAT Office as a supplier/vendor (even though citizens who do not get their taxes worth are entitled to consider them dacoits selling thin air wink ). Make each VAT claim a supplier's invoice. Make each re-payment from the VAT Office as a Debit Note first and then fulfilled by their re-payment by allocation.

@joe: any SOP for it?

apmuthu's Website

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: VAT Payment and Repayment

I guess that I have left a tips on the wiki, however this is an accounting issue, so best ask your local auditor.

Joe

  • From: India, TN, Karur
  • Registered: 05/16/2014
  • Posts: 1,195

Re: VAT Payment and Repayment

i guess it would be like this

For VAT Payment
                                        Debit            Credit
VAT account COA               XXXXXX
Bank Account                                        XXXXXXX

For VAT Repayment

                                          Debit            Credit
VAT account COA                                     XXXXXX
Bank Account                      XXXXXXX

I hope it helps.

Subscription service based on FA
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kvvaradha's Website

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: VAT Payment and Repayment

Check the for Sales Return and De-Allocation

apmuthu's Website

  • From: Ireland, Cork
  • Registered: 12/10/2015
  • Posts: 25

Re: VAT Payment and Repayment

kvvaradha wrote:

i guess it would be like this

For VAT Payment
                                        Debit            Credit
VAT account COA               XXXXXX
Bank Account                                        XXXXXXX

For VAT Repayment

                                          Debit            Credit
VAT account COA                                     XXXXXX
Bank Account                      XXXXXXX

I hope it helps.

That's what I am doing but it seems to be wrong because FA is showing this amount in Tax Inquiry for the period.