▶ Entering a VAT Refund (or payment)

Entering a VAT refund (or payment)

Non-VAT registered Councils will always be in a position where they are due a VAT refund from HMRC, whereas VAT registered Councils that charge VAT on goods/services may be in a position where either they are due a VAT refund from, or must make a VAT payment to, HMRC.

The same principle applies when entering a VAT refund or a VAT payment in Scribe, it is simply the transaction type that will differ (e.g. receipt or payment).

• Navigate to Menu Transactions → Receipts (or Payments).
• Enter details as you usually would when adding a transaction.
• Select R: Refund as the VAT rate. This option calculates VAT at 100%.
• Enter the total amount of the refund or payment into the VAT field. You won't be able to input anything in the net box for these transactions.
• Once you've confirmed all the details are correct, click on 'Add' to complete the entry.

This allows Scribe to calculate your VAT position throughout the year (via the VAT Summary), and is particularly important for Councils working in Income & Expenditure at Year End, as the closing VAT position will automatically form an adjustment between Box 7 & Box 8.