How do you record a VAT refund in quickbooks online?

How do you record a refund for a VAT return from last financial year before I started using quickbooks? Should I put it in as an other income or something else?

I have the same question.

Hello there, @atki and @ Periclase.

Welcome to the QuickBooks family. Let me point you in the right direction on how to record the VAT refund.

You can use the Journal Entry feature to enter the transaction. This is to ensure the records are in tiptop shape.

We believe that every business is distinct, especially on the accounts used to handle each transaction. For this reason, I recommend contacting your accountant first to help identify the correct posting account for Debit and Credit.

This information should get pointed on the right track. Stay in touch if you have any follow-up questions or concerns about QuickBooks. Please know I’m here to help.

We have received a VAT refund for a return done within QBO which was automatically posted from the bank account linked. Can you clarify if following your instruction ("Record Refund") creates a Cr on the VAT control account along with the Db on the Bank? If not, where and how is the credit side posted?

With the automatic posting from the bank account, how can I add the Credit side to the VAT control?

Should I delete that record and post the refund with "Record Refund"?

Thank you

Hello there, EliBee.

The record a refund option is for recording purposes and the transaction is recorded correctly within your bank account. After you record a refund, you can run a quick report of the account and look into the Debit and Credit side. 

Let me show you how:

1. Go to the Accounting menu and select Chart of Accounts. 
2. Look for the account where you posted the refund. Click the drop-down beside Account history.
3. Select Run report.
4. At the upper-right of the report, click the Gear icon. 
5. Click Show More and check the Credit and Debit box. 

There you can see the affected accounts. In addition, when you match the refund to the deposit in your bank feeds make sure that you select the correct account where the refund was posted.

Refer to these articles for more detail on how to manage bank downloaded transactions and VAT refund:

• Record a VAT payment or refund [Video]
• Categorise and match online bank transactions in QuickBooks Online

Feel free to mention me in your reply if you need more help. You take care!