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VAT Refund off-set

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  • 01-04-2024 3:16pm
    #1
    AgtMike76
    Registered Users Posts: 2 ✭


    Hi, I'm due a VAT refund let’s say €1500 end of March. I've opted for an off set of the €1500 VAT against the current March PAYE liabilities which is €750 and the next April PAYE liabilities (which I don't know yet but took a bet that it'll be) €750. So 1500-750=750 VAT end March and 750-750=0 VAT end of April. Now I hope that everyone can see my challenge since I'm not getting a VAT refund in the bank nor I'm paying PAYE from the bank. End of March Financial account is showing:

    Creditor Revenue Vat €1500 ( I know how compute a vat refund but not how to off-set it against liabilities)

    Creditor Revenue PAYE €-750 (this usually is dealt with €750 out of bank then closing balance will be €0, but this time I'm not paying out from the bank)

    Any helps would be much appreciated.

    Thanks AM



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    #2
    Allinall
    Registered Users Posts: 6,542 ✭✭✭Allinall


    https://www.boards.ie/discussion/2058344482/vat-refund-off-set

    Your VAT balance will be a debtor. You just leave the two account balances sit as you outlined. At the end of April you will have an additional PAYE liability of €750, giving a total of €1,500.

    You can then do a journal between the two accounts to clear both balances.

    You will, of course have a new VAT balance at the end of April, reflecting your March-April VAT return.



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    #3
    SureYWouldntYa
    Registered Users Posts: 7,724 ✭✭✭SureYWouldntYa


    https://www.boards.ie/discussion/comment/121962345#Comment_121962345

    This is correct

    It's often easier to just take the refund and just pay the other balance 2/3 days later, makes it a bit clearer down the line when wondering what happened that VAT refund you were due or how was that PAYE liability paid, no clear function on ROS to see offsets (none I'm aware of at least)



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