Posts by Taylor Wright12

Nicole Lee6 said:For your accounting purposes, the invoice should have been recorded in USD 🤔, so those exchange rate differences shouldn't actually affect you 🤷

In our case, they returned an invoice to us in October that had originally been issued in July. That July invoice carried a tax liability transfer to our partner, but now the partner is returning it in October and demanding we issue a new one that includes VAT. So, in the month I received the return—October—I voided that July invoice and issued a new one per their request (this time including VAT). Consequently, I went ahead and filed a correction for the VAT forms and the aggregate filings for July 🤷

thanks for the help

thanks so much for the reply

Hey guys, I’ve run into a bit of a situation and could really use some advice. So, back in July, our company imported some goods from the Netherlands (it's all showing up on our VAT return). Then, in September, we sent some of those items back to the supplier over there and issued an invoice for the return (which we reported on the Summary Return). Here's the kicker: the supplier won't actually pay us cash for that invoice. Instead, they just sent over a credit memo against that original first invoice for the returned amount. Now I'm sitting here with two different documents for the exact same thing: an outgoing invoice and a credit memo. My gut feeling is that the right move is to void the outgoing invoice and report the credit memo to the IRS, but if I do that, do I need to show that amount as a negative value on both the Summary Return and the VAT return?

Hey there,

I could really use some advice; I need to void an outgoing invoice from September that was issued in dollars (it’s already sitting in my aggregate filing), and I'm stuck on what date to use. To me, it only makes sense to use the original invoice date to avoid those annoying exchange rate discrepancies—I mean, it makes zero sense to deal with currency fluctuations on an invoice that hasn't even been paid yet, right? Also, should I list this on my next tax filing as a negative amount? I'm pretty new to all this bookkeeping stuff, so I'm feeling a bit lost. Any tips would be awesome!

Thanks a bunch,