I had some tax returns for VAT some time ago.
Do i need to use a journal for this, this would be proffit.
How do i enter this ?
Kind regards
Andre
Can you please expand upon what you mean by this
Yes ofcourse.
When i buy items for my shop it is with vat included and when i sell also
bought 1000 EUR raw stones 21 % VAT = 210 VAT
Sold ART 1000 EUR 6 % VAT 60 EUR
In this case i paid more VAT than i need to pay 210 - 60 = 150 EUR.
I get this back from the tax office
But how do i register this.
150 EUR is added to the tax payable but on the other side of the balance it should be profit i think.
how do i register this ?
All vat transaction are within the balance sheet and are not related to profit & loss.
Your vat account has a debit balance of 150.
When you receive the refund - Receive Money with the account as Tax account.
Now the balance will be zero
The other side is increased bank account balance.