Sales Tax/Vat refund from Government

[Pedro Albuquerque]

Great question!

I, not being an accountant, did it also your way. Because I consider VAT 
as an expense account.

Note that we can also have IRS refunds. Me too would like some advice.

Regards,
Pedro.

Às 13:40 de 03-02-2017, John Whitmore escreveu:
> 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
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