VAT refund not posted

marlo13 · ‎August 07, 2019

Hi, I'm new to QBO. I submitted my last VAT return using MTD. I have received a refund. How do I post it? When I go to Taxes, the VAT shows as paid (green tick next to it) but it doesn't allow me to post the refund onto my bank account. If I go to filed returns, there is nothing on that list. As I said, I submitted the return using MTD, it went through OK. I'm not sure of what to do now. Thanks in advance.

GeorgiaC · ‎August 07, 2019

Hey marlo13,

Thanks for your post and welcome to the community.

Returns which are filed with a negative balance of VAT DUE (i.e. refund) are automatically marked as paid on the system - to record the refund click on the drop-down on the action column against the filing and 'Record refund'. Select the bank account, date, and amount received then save - this will the match to the payment in for-review if you have the bank connected.

View solution in original post

GeorgiaC · ‎August 07, 2019

Hey marlo13,

Thanks for your post and welcome to the community.

Returns which are filed with a negative balance of VAT DUE (i.e. refund) are automatically marked as paid on the system - to record the refund click on the drop-down on the action column against the filing and 'Record refund'. Select the bank account, date, and amount received then save - this will the match to the payment in for-review if you have the bank connected.

marlo13 · ‎August 07, 2019

Thank you GeorgiaC! So simple when you know how:) Thanks again.

bill3103

Does a journal also need to be posted to reduce the 'expense' by the amount of refund to avoid the overhead being overstated??

CharleneMaeF

Hi, bill3103! I'm here to ensure your VAT refund is recorded accurately.

Beforehand, I'd like to know some details to help me provide the necessary steps to sort this out. How do you want the refund to show in your books? Do you want it as an income for the business or not? This way, we can ensure your Profit and Loss is correct.

I'll keep an eye on your response. Please don't hesitate to get back on this thread.

bill3103

Hi Charlene

The refund relates to input VAT paid and reclaimed on consumables. I'd to reduce my cost of sales consumables by the refunded amount to ensure that my P&L correctly accounts for the (net) cost of consumables. I presume this would be done by posting a Journal but woyld like to know what Dr/Cr entries would be required. Thanks

bill3103

Yes, see my full post. QB keeps going on about automatic matching/posting of the refund but never seems to answer the matter of overstating expenses in the P&L. Im waiting for a full reply.

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VAT refund not posted