Credit note for rebate of rentals on leased equipment

I recently sold an asset on lease to a customer.

Customer paid leasing company X and me Y. I have given the customer a sales invoice for Y. Leasing company gave customer an invoice for X.

The leasing company has issued me with a credit note for the refund of rentals (Y) out of the disposal. Should I use this as a credit in my purchase inputs for VAT or a credit in sales ?

Hello ..


I think if it were me, I would adjust my purchase figure, T2..

If you issued sales invoice and the credit noted some of them I’d put that on the T1 box.. just putting like with like...