Re: [SL] Refund Checks

[Dr E. L. <el...@li...>]

Tony

as you write at the end, the question is not not to pay the net tax, but
some jurisdictions require that you pay first, claim second and
reconcile the net tax last.

How would you address this?

el

on 11/29/06 3:18 AM Tony Fraser said the following:
> On Sun, 2006-11-26 at 23:59 +0200, Dr Eberhard Lisse wrote:
>> By the way, this Credit Note business of yours, how would it work if
>> you
>> paid VAT? Ie, where you *have* to pay it *and* later claim it back? I
>> operate a domain Registrar and the Registry it exclusively works with.
>> So I could just do what you are doing, but would end up in jail for
>> violating the VAT act. Irritating, but I just pay the Receiver wait 2
>> months and get it back :-)-O.
> 
> I never said I didn't pay the taxes due...
> 
> Say I do some work. Invoice to customer:
>   Labour   $100
>      Tax   $ 20
>    Total   $120
> 
> And I buy some goods: Invoice from Vendor:
>   Parts $ 80
>     Tax $ 16
>   Total $ 96
> 
> The Customer and Vendor happen to be the same legal entity so at the end
> of the month I "pay" the Vendor invoice by debiting the holding account.
> I then issue the customer a "Credit Note" (Negative AR Transation
> crediting the holding account) for $96 and apply it as a payment on the
> invoice they owe to me. Then the Customer issues me a Cheque for $24
> which I use to pay the remaining balance of the invoice.
> 
> When I report to the tax man I report $20 collected and $16 paid and
> send a cheque for $4. AFAIK all perfectly legal under our tax laws...
> Yours may be different.
> 

-- 
Dr. Eberhard W. Lisse  \        / Obstetrician & Gynaecologist (Saar)
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