The advance receipt voucher

What the receipt voucher records

When a supplier receives an advance, GST expects it to issue a receipt voucher setting out the amount received and the details the law requires, so the advance is documented at the point the money comes in.

Because an advance can bring the tax forward through the time-of-supply rules, the voucher is also the record that ties that early tax point to a specific receipt.

Linking to the invoice, and refunds

When the supply is later made and the tax invoice is raised, the advance is adjusted against it so the same value is not taxed twice. The receipt voucher is what connects the earlier advance to that final invoice.

If the supply falls through and the advance is returned, the supplier issues a refund voucher instead, closing the loop the other way.

How Lekha records the advance

Lekha records receipts against the buyer and bill they relate to, so an advance and the invoice it is later adjusted against are tracked together rather than as loose entries.

Lekha records what your documents say and tracks the money on both sides — what you owe and what you are owed. It records and tracks; it does not replace your accountant.

Questions

What is an advance receipt voucher?

The document a registered supplier issues when it receives an advance, recording the amount and required details before a tax invoice exists.

What happens to the advance when the supply is invoiced?

It is adjusted against the final tax invoice so the same value is not taxed twice. The receipt voucher links the advance to that invoice.

What if the advance has to be refunded?

The supplier issues a refund voucher, which records the return of the advance where the supply does not go ahead.

This guide is general information, not legal or tax advice. Confirm the current rules and your own circumstances for any specific case.

Keep reading

• GST on advance payments
• The payment voucher, explained
• See how Lekha works
• All Lekha guides