Accounting question - Receipt and tax credits

Hello! Cloud user here. I’m afraid of even asking this question…this will confuse me :smiley:

We issued a sales invoice to a government authority. They didn’t seem to understand their own procedure or the tax system, but after some digging it appears that we have to invoice them as usual (with VAT). They will then pay us net - 2%.

The authority will then pay the VAT straight to one of the tax authorities and issue a certificate that we can use on our VAT return so we don’t end up double paying.
The 2% deduction is a withholding tax that we can deduct from our corporate tax (from another authority). We have 2 tax authorities…

Invoice is for 350 USD + 52.5 USD VAT (15%) for a total of 403 USD.

They paid us 343.43 USD and provided a VAT certificate for 52.5 USD.
We have yet to obtain the certificate for the 6.57 USD, but I have been informed that it is on it’s way.

At the moment manager says 59.57 USD is due. Makes total sense.


  1. How do I post the VAT certificate as a receipt? First I thought oh I can just post it like normal, but I can’t put it towards any of our accounts cash or bank account, because it will not reflect there.
  2. How do I post the other receipt once it finally arrives?

I hope my questions make sense.

Thank you for your time!

I think you should ask this accounting question to a local accountant 'cos, as you know, this forum is about the Manager accounting software application.

Yes I have done that and will do it again. Still looking for an answer so I decided to try my luck here :laughing: