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nicolakennedybss
Level 2

Recording VAT payment in Ireland

Hi, I'm just wondering how to go about dealing with a refund in VAT in Ireland. So I was due a refund of €71.74. As Revenue only accepts whole numbers, I received a refund of €72 which means that I was overpaid by €0.26.  Obviously this is a small amount but now QBO is asking me to record something to do with the €0.26 and won't mark the VAT as filed. It has put the €0.26 in suspense. Any advice?

4 Comments 4
Rose-A
Moderator

Recording VAT payment in Ireland

Hello, nicolakennedybss.

 

Let's get your VAT payment recorded. You have the option to record the refund manually in QuickBooks Online. However, this will not show as available credit in the next period.

 

To record the refund:

 

  1. Go to Taxes, then select VAT.
  2. Select the All returns ▼ drop-down menu, then choose the specific VAT period you need.
  3. Select the View summary ▼ drop-down menu, then select Record Refund.
  4. Select the bank account the refund has gone into.
  5. Make sure you've selected Refund under Payment Type.
  6. Enter the refund date and amount in the appropriate fields.
  7. Add a memo if needed.
  8. Select Save.

Once done, you can mark the VAT as filed. You might want to check these articles to learn more about filing and unfiling VAT in QuickBooks:

 

Know that you can always visit our Help Articles page for QuickBooks Online in case you need some reference for your future tasks.

 

Let me know how the result of this troubleshooting in the comment below. I need to make sure this is resolved and you're back to running your normal business processing. All the best!

nicolakennedybss
Level 2

Recording VAT payment in Ireland

Hi,

 

Thanks for the reply but this does not answer my question.

 

I did all of that to record the refund. However, the tax refund due was €71.74. Revenue refunded €72 as it only deals in whole numbers. As such, when I recorded the refund, QBO now obviously thinks I owe Revenue €0.26.  I had to input €72 for the sake of my Bank Reconciliations but realistically going forward, this is going to be an issue as it's always going to be a little off due to the whole number anomoly. I'm looking at a solution for this, not how to record a VAT refund.

 

I've included a screenshot to help clarify. 

 

Thanks in advance,

Nicola

2.JPG 1.JPG

AlcaeusF
Moderator

Recording VAT payment in Ireland

I appreciate you for getting back to us with further details, @nicolakennedybss.

 

I can provide some information about recording VAT payment in QuickBooks Online. Since Revenue overpaid you with the amount of €0.26, it'll show the same figures from the balance column.

 

As a workaround, you can perform a VAT adjustment to the current return to offset the overpaid amount. It would be the VAT Payable account for both the Sales tax and Adjustment account.

 

Here's how:

 

  1. On the left panel, go to Taxes.
  2. Select Prepare return.
  3. Click the Adjust option next to VAT on purchases.
  4. Below Adjustment account, add the VAT Payable account.
  5. Enter the amount.
  6. Hit Save.

Check out these screenshots for your visual guidance:

 

 

 

 

If you have additional questions or concerns while working in QBO, leave a comment below. I’ll be happy to help you out.

nicolakennedybss
Level 2

Recording VAT payment in Ireland

Thanks, as I've already prepared and recorded the return/refund, I can't adjust now. I'll see if I can try to do this the next month