VAT refund in Sage - The Book-keepers Forum (UK)

Jane · Veteran Member

VAT refund in Sage

Rhianrach · Expert

When you run your vat return in sage and reconcile it you then post the difference in your case a refund in a liability account which in your case the figure would be on the debit side, when you recieve the cheque you then debit your bank and credit your vat liability which should clear the account.
There is a wizard for transfering to vat liability which is called vat transfer in manage vat window.

I think. hmm

semsley · Guru

I don 't use manage VAT. But do my own journal to transfer VAT on sales and VAT on puchases to VAT liability then when the refund comes in post it from the bank to VAT liability which renders that account Nil.

-- Edited by semsley on Monday 12th of July 2010 08:44:13 PM

BackOfficeGroup · Guru

Manage VAT is to compile and submit the VAT return and I would not use it for anything else.

When I do the return, I use the Wizard to do the journal for me, then when it comes to pay, I may a bank payment/receipt for the amount and post it to the correct code.

When you say it doesnt close it off, what do you mean - is it that the ledger is not a nil balance?

P

Susie Sue · Senior Member

Do you mean it still shows as unpaid? Don't think you can post a refund using the Manage VAT. I just post a receipt to VAT liability like you have done.

Jane · Veteran Member

Thanks everyone

I'll have a look later this week when I'm back at the clients office. Looks as if I have done everything correctly but if I have any further questions I'll let you know

J

Mickey · Veteran Member

Would that be simply bank payment or bank receipt using the VAT liability code of 2202?