VAT accounting on refunds / clawbacks

Forum Categories › GENERAL VAT DISCUSSIONS › VAT accounting on refunds / clawbacks

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  • 1 October 2021 at 10:18 #55759
    Steve Prime
    Member

    HI all
    I have fee-refund clauses in my terms of business for a set period on a sliding scale.
    How do I account for this in quick file?
    I guess I can always issue a credit note for any amounts refunded, but I’m confused about the VAT element?
    Can anyone help with this please?
    Do I have to pay the VAT due in a given quarter, and then IF there is a refund of part / all of the fee and VAT, how will I manage that with regards to HMRC and the VAT?
    TIA for any help on this
    Best regards
    Steve

    1 October 2021 at 10:41 #56193
    VAT-adviser
    Member

    You can adjust VAT through credit notes. You have 14 days to issue a credit note from the date that the actual refund is made, which must be adjusted in the same VAT period in which the refund is given or received.

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