How do I categorise Import Duty and Import VAT expense?
I have an expense regarding the import duty and import VAT that we paid when importing stock to the UK from China. The total invoice cost was £11,329.56 (see attached image) and this is showing as an expense in QuickBooks that I need to categorise. It is comprised of £1,303.47 for Import Duty paid and £10,026.09 for Import VAT paid.
How do I categorise this expense? I can split the expense
amount in to each type but the maximum VAT I can select is 20% whereas the
Import VAT expense is all VAT. No option available categorises the expense as
fully VAT expense for me which I need for my tax return. (see second attached image)
Hi kritsana2712, Thank you for your query! Recording a...
Thank you for your query!
Recording a 100% VAT expense can be a bit tricky in QuickBooks, but don't worry, we have a a step-by-step guide on how to record it.
Please follow these steps:
1, Click on the + sign and choose Expense
2, Either choose a payee or leave that box empty
3, On the first line of the expense choose any of your Expense accounts
4, For the amount enter a pound (1) and choose 20% S as your VAT code
5, On the second line choose the same expense account
6, For the amount, enter minus a pound (-1) and choose No VAT as a VAT code
7, The total of the expense will show as 0
8, Under the Subtotal box the VAT box become editable
9, Enter the desired VAT amount into the VAT box and save the expense
10, This will create a 100% VAT transaction
This transaction will show in Box 4 on your VAT returns.
Let me know if you have any queries. Or, if you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours