when a debt is confirmed as doubtful according to the law, the seller is entiled to claim the vat collected and paid on the related sale.

the refundable vat is calculated as follows:

(unpaid amount of the invoice*tax rate)/(tax rate+100)

a car agent sold a car for 23.000.000, aplicable vat is L.L 2.300.000 which makes the total confirmed as doubtful. the uncollectible amount is then L.L 7.300.000.

vat to be claimed: 7.300.000*10/110=663.636.

please give me the accounting entry