Vat

lgarside
lgarside Registered Posts: 122 Dedicated contributor 🦉
Hello, I was wondering if a utility company provides you with a refund should this be treated as output VAT or negative Input VAT?

Often the refunds are in relation to projects we are working on so these are treated as negative input becuase they are effectively a creditnote on the purchase.

However, if they can't be traced back to a project they are posted to a Misc account. Should these be treated as Misc income (output VAT) or will they still be treated as negative inputs?

Comments

  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    I would always say negative input. It is never really an income...is it?
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