We have started to rent some storage space.
In the first invoice the landlord company has charged us a security deposit which had 0% VAT.
Invoice was like this:
| Description | Amount | VAT | Total |
| Deposit charge | 100.00 | 0.00 | 100.00 |
| | | Invoice amount: | 100.00 |
| | | VAT: | 0.00 |
| | | Total: | 100.00 |
We have paid this invoice.
Later they have issued the invoice for rent which went something like this:
| Description | Amount | VAT | Total |
| Move-in rent | 200.00 | 40.00 | 240.00 |
| Apply credit from Reservation deposit | -100.00 | 0.00 | -100.00 |
| | | Invoice amount | 100.00 |
| | | VAT | 40.00 |
| | | Total: | 140.00 |
As you see, VAT was calculated on whole amount, and amount was later discounted by the previously paid security deposit.
How should I go about classifying these two invoices and corresponding transactions (where we pay 100.00 first and 140 later, but 140 includes 40 pounds of VAT)?
