VAT on import

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looking for some help on how to record the VAT on an import bill (from China) we have. Our supplier send the shipment by fedex. A month or so after receiving we get the Fedex bill totaling £330.29. £314.99 is the VAT on the import, £12.75 is the charges which is vatable.

We need to reclaim the £314.99 VAT we paid however i dont see it appearing when i create the VAT return. Initially i put the VAT element under VAT suspense when creating the expense (with vat exempt or 0% VAT on it). I'm guessing this isn't correct as it isnt showing up on the vat return.

Any help on how to get the £314.99 to appear on the VAT return would be much appreciated.

Thanks

QuickBooks Online

paul72

Level 6

Hi @gregw79

There are quite a few posts on here about import VAT - there are a couple of different ways to achieve the same thing but you need to create an invoice (or series of lines) that give 100% VAT (search for 100% VAT or import VAT for the various methods & choose your favourite).

My usual method for ending up with £20.00 VAT charge...

You effectively have to enter a two-line transaction.

(1) ... Value of £100.00 with S20% VAT = £120.00

(2) ... Negative value of £100.00 with 0% VAT = £100.00

This will leave you owing the £20.00 of VAT & show correctly on your VAT return.

Hope this helps.

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