vat return in sage

[lukas]

How to log VAT repayment in sage to get everything right?

[Kevin Hall]

I assume you mean a UK purchase invoice on which VAT was paid, which was then reclaimed on a VAT return and later received in your bank account from HMRC.

You should have created a VAT debtor account when you recorded the purchase invoice (i.e. expecting the VAT to be received back from HMRC). Set the payment against this debtor account:

DR Bank £x
CR VAT debtor £x

Others here will have to tell you what the usual Sage codes are for these entries.

Hope it helps?

[lukas]

Where I have to create this account. Is it new bank account or customer account?

[Kevin Hall]

On purchase (say, £100 net, £17.50 VAT, £117.50 paid):

DR Purchases £100.00
DR VAT debtor £17.50
CR Bank £117.50

On recovery of the VAT from HMRC:

DR Bank £17.50
CR VAT debtor £17.50

If you know your double-entry bookkeeping, this should be enough for you to work out what is required and where you went wrong before (if anywhere).

If not, unfortunately I cannot tell you the Sage codes to use as I do not use Sage myself. Others here might be able to help.

[DuaneJackson]

I think (and could well be wrong) the standard VAT codes on Sage are Input Vat 2201 and Output VAT 2200

[Mattonella Tile Studio]

If you're talking about a repayment from HMRC, then go into the screen that lists your bank accounts. Select the account the repayment has gone into. Hit receipt at the top of the screen, the nominal code will be the account that should contain the amount recieved (as calculated from your VAT reconciliation) (I think it will be 2202 VAT liability), change code to T9 in VAT column.

[lukas]

thanks Mattonella,

this is what I was looking for. I know basics but just switch to sage and wasn't sure how to do this.