VAT Question
Hello, I was wondering if you paid an invoice that had the 17.5% VAT applied but should have been 20% can you do the below calculation or do you have to revserse the original and repost the new correct invoice? It seems easier just to do a quick calculation as below;
So old Inv was for 50.00 plus VAT 17.5 £58.75
New VAT only invoice received for £1.25 (the additional 2.5%)......
Calculate it as £1.25/17.5=0.07
0.07 x 117.5 = 8.23
DR Contra nominal 8.23 17.5% VAT so £1.25 hits input VAT
CR contra nominal zero rated £6.98
CR bank nominal 1.25
I assume you could also do 1.25/20 = 0.06
0.06 x 120 = 7.50
DR Contra nominal 7.50 20% VAT so £1.25 hit input VAT
CR contra nominal zero rated £6.25
CR bank nominal £1.25
Am I right in thinking as long as the VAT amount being claimed ie £1.25 is correct  how you go about posting it  ie reversing org inv at 17.5% then reposting new inv at 20%, or doing one of the above calculations doesn't matter??
So old Inv was for 50.00 plus VAT 17.5 £58.75
New VAT only invoice received for £1.25 (the additional 2.5%)......
Calculate it as £1.25/17.5=0.07
0.07 x 117.5 = 8.23
DR Contra nominal 8.23 17.5% VAT so £1.25 hits input VAT
CR contra nominal zero rated £6.98
CR bank nominal 1.25
I assume you could also do 1.25/20 = 0.06
0.06 x 120 = 7.50
DR Contra nominal 7.50 20% VAT so £1.25 hit input VAT
CR contra nominal zero rated £6.25
CR bank nominal £1.25
Am I right in thinking as long as the VAT amount being claimed ie £1.25 is correct  how you go about posting it  ie reversing org inv at 17.5% then reposting new inv at 20%, or doing one of the above calculations doesn't matter??
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Comments

I think it depends on the software you are using and to me also to the supplier.
If our company would receive an invoice for the difference only, I would just post a VAT only invoice for the difference. Aka, one invoice for £ 1.25 VAT only, with as reference or description the original invoice it relates to and a comment that this was the invoice to correct the VAT.
If our supplier sends a new invoice however, we would require a credit and use that to reverse out the old one and put the new one on.0 
If the first invoice was posted as it was received ie £50 to the expense and £8.75 to VAT then just post the second invoice, £0 expense and £1.25 VAT. Total owing to supplier £60, being £50 plus VAT at 20%.0

Vat
Thanks for the answers. However, I'm still not sure from the VAT Reporting point of view
the correct way to do it  or if it matters as long as the amount you are claiming as input/output is right?
We had an example where we just received a slip with a chq refund just saying it was a refund on overpaid VAT.
Do you a, Reverse the old invoice and put through the correct amount
b, Just do a quick calculation
22.32/17.5 = 1.27
1.27 x 117.5 = 149.86 so post as old rate 17.5% gross being £149.86
c, 22.32/15 = 1.48
1.48 x 115 = 171.12 so post as old rate 15% gross being £171.12
All 3 methods will result in zero cost to expense, cr to input vat and dr to bank but is it ok to just post it based on the quick way of calculating it as b or c?0 
Sorry I really don't understand what it is you're asking now. I take it this as a different scenario to the one above.
Go back to the £50 plus VAT invoice. If you receive an invoice which has the wrong VAT rate and you've already posted it onto your accounts package then I'd say you have two options:
1. Credit the invoice from the system and send it back to the supplier asking for a replacement and when received post the new invoice.
2. Ask the supplier for a further invoice (or credit note depending which incorrect rate was used) to correct the original invoice and when received post that invoice (or credit note) onto the system also which will give you the correct amount.
Or, if you haven't already posted it onto your system just send it back asking them to send a correct one.
You seem to be over complicating matters if I'm honest, or maybe it's just me not understanding what you mean :001_smile:0 
Same as Jilt said above, not sure what you are after here.
If we get a cheque with a refund for wrongly paid VAT. I would post the cheque as a manual receipt to the supplier account and ask them to raise a credit note for the VAT amount.
If I can't get a credit note, I will post it straight to the VAT code and not put in any expense codes.0