| | Description | How it worksWhen you submit a VAT return, we transfer the amounts from the VAT on Sales and Purchases ledgers to the VAT Liability ledger. This is to tell you how much you owe or can reclaim from HMRC. When you have fully paid your VAT, the balance of the VAT liability is zero. Learn more about how to Clear the VAT amounts from ledger accounts. You can record your VAT refund in a few different ways - Use the Reclaim button from the VAT Return
- Match the refund from a bank feed
- Record a VAT refund without a corresponding VAT return
Once you've received the refund, you can view the transaction in your bank activity. To view the bank activity, go to Banking then select the required bank account. |
| Resolution | Process your VAT refundSelect an option below to learn more about recording your VAT refund. If you're due a VAT refund, the button will show Reclaim by default. - From Reporting, select VAT Returns.
- Choose the VAT Return you want to reclaim.
- Select Reclaim, then enter the amount, date, and the bank account you received the money into.
- Select Save.
Once saved, the VAT Return shows as Paid. If you didn’t reclaim the full amount, it shows as Part-paid. If you've connected your bank to a bank feed, it's likely that your VAT refund will show in your incoming transactions. We recommend that you: - Follow the steps above to record your refund from the VAT Return.
- Match your incoming refund to the refund already created from the VAT Return.
Match the refund from your bank feed- From Banking, open the relevant bank account.
- Select the Transactions link to find transactions downloaded from your bank.
- Find the VAT refund.
- Choose Match. Select the VAT refund you entered above. The type shows as VAT Payment.
- Select Match.
This explains how to record a VAT refund to HMRC when you don't have the corresponding VAT return in Sage Accounting. To do this, enter an Other Receipt and choose the VAT liability ledger account. Make the VAT liability ledger account visibleBefore you start, make sure you can select the VAT Liability ledger account on Other Receipts. - From Settings, choose Business Settings.
- From the Financial Settings section, choose Chart of Accounts.
- Select the row for the VAT liability ledger account.
- From the Visibility section, make sure you've selected Other Receipt.
- Select Save.
Record the VAT refund- From Banking, open the relevant Bank Account.
- Choose New Entry, then Sale/Receipt. Select the Other Receipt tab.
- Enter the date and amount for the VAT refund.
- From the ledger account drop-down, choose the VAT Liability ledger account.
- Select Save.
Record VAT PaymentsNeed to record a VAT Payment? See our Record VAT payments article. |
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