When vat is reclaimed from HMRC following a debt going bad, the vat should be reclaimed in box 4 as input vat, does the method for writing off bad debt (using the sales credit note function) put the associated vat in box 4. I assume box 6 and 7 should not alter?
Hello Steve,
If you set the VAT Treatment to 'Purchase of Goods or Services from UK Supplier' then the credit note will increase boxes 4 and 7 on the VAT return. If you don't want box 7 to be affected, you will need to manually reduce Box 7 by the credit note amount.
Regards,
