VAT return - sale with potential bad debt in same quarter
My client made a large sale in April. Their customer paid by credit card.
In june, the Credit card company is trying to recover the money from my client - don't know the full story, seems some problem with the customer.
My client has 'requested' that I exclude the sale & vat from the April-June VAT return.
I'm immediately thinking no way...it all needs to be accounted for. I am aware of the 6 month bad debt rule if you want to reclaim any vat paid, but my client hasnt actually paid any VAT over yet for the sale because the sale & bad debt have occured in the same quarter.
What would you do? leave the Sale & associated VAT on the books & in the return, or remove?
Any thoughts much appreciated.....