How To Show VAT On Returns

Table of contents:

How To Show VAT On Returns
How To Show VAT On Returns

Video: How To Show VAT On Returns

Video: How To Show VAT On Returns
Video: QuickBooks Online - VAT Return Tutorial - #quickbooks #vat 2023, March

Sometimes, in the course of the economic activity of an enterprise, managers are faced with situations when low-quality goods are returned back to the supplier. As a rule, accountants are confused: what to do with VAT in such cases?

How to show VAT on returns
How to show VAT on returns


Step 1

As a rule, when accepting the goods, you must take all the documents that confirm the fact of purchase - this is necessarily an invoice, invoice. In accounting, based on these documents, make an entry:

D41 "Goods", K60 "Settlements with suppliers".

Step 2

After that, you must highlight the input VAT. This is done in order to subsequently calculate the amount of tax to be paid to the budget. Make the wiring:

D19 "VAT on purchased values", K60 "Settlements with suppliers".

Step 3

Then add the VAT amount on the goods received:

D68 "Calculations of taxes and fees", K19 "VAT on acquired values".

Step 4

If you paid for this consignment of goods, reflect this in the accounting as follows:

D60 "Settlements with suppliers", K50 "Cashier" or 51 "Current account".

Step 5

After you find a marriage, issue an invoice to the buyer. Reflect it in the sales book. In the invoice, indicate that the item is a return. In accounting, reflect the transaction as follows:

D76 "Settlements with creditors", K41 "Goods".

Step 6

In order to recover the VAT amount, make the posting:

D76 "Settlements with creditors", K68 "Settlements for taxes and fees".

Step 7

Well, how to reflect the return of goods to the supplier? After receiving the invoice from the buyer, reflect it in the purchase book and make the posting:

D62 "Settlements with customers", K90 "Sales".

Step 8

Then adjust the cost of the returned item:

D90 "Sale", K41 "Goods".

Step 9

After that, adjust the VAT amount:

D90 "Sales", K68 "Calculations of taxes and fees".

Step 10

Reflect the payment of the amount of money for the goods in accounting as follows:

D62 "Settlements with customers", K50 "Cashier" or 51 "Current account".

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