PVA VAT Codes
I have a very specific question about import VAT and the new PVA VAT code. Please bear with me…
We import containers that are paid for in 2 instalments prior to arrival of goods in UK. We typically enter our suppliers (Zero rated for vat) invoice as a bill and it gets paid before arrival of goods. Those net figures get posted to box 7 on our vat return.
Then on arrival of goods into the UK, we find out the final VAT import figure, and we would normally pay our vat through our deferment account, creating an HMRC bill for just the VAT that we have paid. That allowed us to claim it back through box 4 on our quarterly return.
So, post 1st January we start to use PVA codes. When we select the PVA code it will not allow us to create a ‘VAT only’ invoice as it is trying to be clever and also complete box 1 and 7 at the same time. As our previous supplier bills have already populated box 7 we can’t use this restrictive code in QBO. Also, we can’t add the VAT at the time of entering the supplier bill as at that stage we don’t know the exact VAT figure which tends to have a ‘VAT value adjustment’ element on container imports. It is not a straight 20% of commercial invoice and the vat isn't paid to the supplier anyway! It's to HMRC.
There must be other people importing containers and have the same issue?
What’s the workaround with the PVA codes in QBO which I am understood to believe are mandatory?
Thanks for getting this far and reading that!