Hi,
I have just submitted my 3rd quarter VAT return via the Making Tax Digital software.
There was a refund of £750.00 for an invoice on the Credit Card statement so this transaction was input into Sage as a 'VR' transaction. This is a purchase credit and should have appeared as a deduction in Box 7 - Total value of purchases, excluding VAT but instead, it appeared in Box 6 as a Sale. I have had to adjust this before submitting to HMRC as it is clearly not a Sale.
Can this be amended in the Making Tax Digital software please so that Credit Card refunds are treated in the same way as Purchase Credit notes and not as a Sale?
Many thanks
Sarah Daly