VAT Reconciliations

Hi all,

I'm a sole trader registered for VAT.

What happens when your VAT position changes for a period for which you have already made a return. For example, what if a purchase had to be refunded?

What happens if you realise you missed something completely which should have been included in a previous return. For example, a receipt for a cash payment turns up later on?

In the case of refunds to customers that's a reduction on sales so VAT (if the sale was VATable) would be due back to the seller on that amount.

If you miss a sale in a period and discover it in the next or a subsequent period, if the amount is not major in the context of your overall sales, then the VAT can be handled in the period in which it is discovered. However, in strictness, you could submit a supplementary VAT return for the period in which it should have been accounted and pay the amount due. Revenue are entitled to interest on late payments. There may be plusses and minuses over the year and once they are not material Revenue allow a common sense approach ot be adopted in handling them.