VAT on returns: what goes wrong when a return falls in a different quarter
Sale in March, return in April: you already remitted the VAT on that sale in Q1, while the revenue is reversed in Q2. Here is how to avoid leaving VAT on the table.
The mechanics
VAT is remitted per filing period, usually per quarter. A sale on 28 March counts in the Q1 return. When the return arrives on 5 April, the correction — the VAT to be reclaimed on that sale — belongs in the Q2 return.
In practice this often goes wrong because the return is processed in the marketplace settlement simply as a negative amount and written off in the same breath in the accounting system. The VAT component is then not explicitly reclaimed anywhere.
Why a year-end crossover makes it worse
If the sale falls in December and the return in January, the correction spans two financial years. The revenue of the old year is overstated, and without a correction entry neither the annual accounts nor the final VAT return of that year are correct. Accountants correct this afterward — if anyone flags it.
How large are the amounts?
At a return rate of 10% and marketplace revenue of €30,000 per month, roughly €9,000 in returns goes through per quarter, of which approximately €1,560 is VAT (21%). That VAT is reclaimable — but only if the correction is included in the right period.
How Linqer handles this
The matching links every return to the original order and compares the booking periods. When a return crosses a VAT quarter boundary, a case is automatically created with the estimated VAT amount to be reclaimed — marked high priority when it crosses a year-end boundary, so your accountant picks it up before year-close.
Let the checks run automatically from now on.
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