I received a Dutch invoice on which vAT was charged.
I sent an email stating that vAT should not be charged. I then received a credit note with only the vAT on it. So I have two documents to enter.
– On the invoice, I indicated: vAT paid
– But how can I enter the credit note? Because I got that vAT back?
Or can I adjust this on the invoice (and indicate that I did not pay vAT) and not enter the credit note? (and possibly add a note)
I have had this situation before and my accountant advised me as next: you enter the invoice as required (vAT will then be reversed in your accounting programme as you are entering a foreign vAT number) and attach the credit note to this invoice. If here ever an audit and they check your account statements, you can show where the refund came from. Otherwise, your transactions will not add up.
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
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