Credit Note From VAT Registered Supplier, But No VAT...

Credit Note From VAT Registered Supplier, But...

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As per the title, would I be best placed to mark this credit note as 'zero rated', 'exempt' or 'outside the scope of vat' when entering it into our system. I have to select a VAT code.

The refund received is the correct amount due, which an element should have been VAT, but I believe the supplier is absorbing the VAT for ease at their end.

I've provisionally put 'zero rated' as the original supply was VATable.

Thanks in advance.

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By DavidMiller
26th Sep 2012 17:07

No VAT on Credit Note

If a VAT invoice is credited the parties can actually agree not to credit the VAT at all which is fine if both parties are fully taxable as there is no VAT loss.

In terms of posting,zero rating the credit note seems reasonable.

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