Sales Tax/Vat refund from Government

[Geert Janssens]

Op vrijdag 3 februari 2017 15:35:28 CET schreef John Whitmore:
> I agree with all you've said and I understand that VAT/Sales Tax is not my
> money, I'm collecting it for somebody else. And I 100% agree that it's a
> liability account, I'm just struggling with refunds. My Problem is that if
> at a point in time, say today, I have built up a Liability of 100 in my VAT
> account and I get a refund of 50 tomorrow, because last month I did nothing
> but purchase supplies, and pay VAT on those supplies, to the tune of 50.
> 
Let's do the numbers:
1. At the end of last month you say you had built up a VAT credit of 50 (the 
state owes you 50). So your VAT liability account would be -50 at that point.
2. Today you say you have built a liability of 100. That means you collected 
150 of VAT you owe the state so far. (Your liability account changed from -50 
to +100).
3. The state pays the refund tomorrow. So your liability account will increase 
to 150, which is exactly the amount you now owe the state for this month.

Does this make more sense ?

Geert