Hi I completed an refund receipt. The original invoice was £150 - 20% CIS + 20% VAT so total of £150.
When I try to get the amount correct of £150 the VAT is Calculated at £25 making my VAT return incorrect.
To get the correct amount of VAT of £30 I have to enter the rate of £180 but this makes the total refunded incorrect.
Does anybody know how to rectify this please?
Hello there, @David Etherington. I'm here to assist you on how you can record a refund.If you would like to provide a refund to a customer or record a refund from a customer whose invoice has been paid, I can provide you with the steps to follow.Here's how:
Also know that if the customer has overpaid, you do not need the credit note as you will already have an unapplied credit that acts as your credit note.
If you're referring to something else, you can check this article for more steps: Record a customer refund or supplier refund in QuickBooks Online.I'd also recommend you refer to your accountant. They can share additional information and guidance, as they know what's best for your business.In case you want to file the VAT return form in the future, you can refer to this article: Submit a MTD for VAT return to HMRC in QuickBooks Online.Feel free to post a reply if you have further clarification or additional information on how to manage the refund. I'll be here to assist you. Have a good one!
Hi @David Etherington
This is an invoice from you to a customer?
Because your original invoice has the CIS element, you will need to raise a credit note to cancel the invoice - then mark the refund against the credit note.
If it's a refund from a supplier/subcontractor to yourself, QBO has a bit of a wobble & has to be worked-around.
Hope this helps.
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