Pre VAT registration - VAT reimbursement - how to enter into accounts software?

[HankMcSpank]

When you get a reimbursement cheque for VAT paid out prior to being VAT registered (i.e. VAT reclaimed for stock still on hand), how do you account for the reimbursement in accounts software?!!

 

[john1989]

It should be posted to the balance sheet account that should be showing a refund owing to you.

 

[HankMcSpank]

Thanks for your input.

The amount owing back to me was calculated outside of the accounts software, the chain of events went like this...

1. Incorporated (not VAT registered)
2. Shelled out a whole heap of VAT for stock
3. Later that year, I reached the VAT threshold/limit.
4. Became VAT registered
5. Calculated stock on hand' (for the date of 'effective' VAT registration) ....worked out how much VAT I was owed back(for the stock purchased) using excel.
6. Submitted my claim for a VAT refund.
7. cheque arrives from HMRC...deposited into bank.

....so how to account for the cheque? My accounts software had no refund showing to me!

 

[Bob]

Credit purchases and other relevant accounts as costs previously have included VAT

 

[HankMcSpank]

Many thanks