Sales Tax/Vat refund from Government

[Geert Janssens]

Op vrijdag 3 februari 2017 13:40:23 CET schreef 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?

Yes. Whatever someone else owes you is an asset. What you owe to someone else 
is a liability. So you should indeed put it in an asset account. Although you 
should check this with your accountant obviously :) In the end he's the 
expert.

Regards,

Geert