Sales Tax/Vat refund from Government

[Geert Janssens]

Op vrijdag 3 februari 2017 14:02:33 CET schreef Pedro Albuquerque:
> Great question!
> 
> I, not being an accountant, did it also your way. Because I consider VAT
> as an expense account.
> 
This is not correct. VAT is something you collect on behalf of the tax office. 
It's never yours so you can't spend it. You owe it to the tax office, which 
makes it a liability.

> Note that we can also have IRS refunds. Me too would like some advice.
> 
As I explained to John as well, a refund is something the tax office owes you, 
so that would become an asset.

Same caveat applies as well: I'm not an accountant so you should verify this 
with one.

Regards,

Geert