Hi, We are registered on Flat Rate Scheme for VAT. When we Sell item to customer we charge 20% to Customer for VAT and Pay 7.5% VAT to HMRC on Selling Price. But sometimes customer returns the item back we process full refund. In that case how to record that transaction in Quickbooks and will that VAT be returned which we already paid on sale but the item is returned back. Thanks
Allow me to provide additional insights in this VAT concern.
When creating a refund receipt in QuickBooks Online, you'll need to make sure that the refund amount and the VAT code are correct. This way, the VAT will be excluded from the customer and to your return.
Hi, I have an online store on ebay when i send refund it automatically shows the return transaction in QB. Will that still needs to process with the same way as mentioned above by adding New Refund Receipt? Because i tried doing this but after that it shows option to Match the transaction with the transaction which QB got automatically from my Paypal Transactions. Thanks
Hello WiganStore, In this case, have you first created a sales receipt for that customer? If so then yes you would need to do a refund receipt to record the refund. It is fine if it matches the refund if you did have the expense of paying them back in real life from your Paypal after first recording it as a sale?
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