Sales Tax/Vat refund from Government

[John Whitmore]

I really thought I had my head around Sales Tax, VAT where I am, but my
accountant threw a spanner in the works, earlier today.

He saw that I had an Income account for Vat refunds and said that that was
wrong as I'd get taxed on an Income and it's not. He said that the refund from
Government should go into the Liabilities:VAT account, which I think is
totally wrong as well. 

So I think that VAT Refunds should go somewhere else. Maybe an asset account?

My Problem with getting a refund and applying that to a Liability account
means that my laibility is increasing, that's not correct at all.

Man accounting is simple algebra but it don't half get complicated.

Cheers for any thoughts on the matter.

John