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How to record Postponed VAT Accounting (PVA) transactions in QuickBooks Online

by Intuit Updated 2 years ago

UK-registered businesses can use the Postponed VAT Accounting (PVA) scheme to account for import VAT on goods worth £135 or more. This means that you can account for the import VAT on your VAT return rather than paying it upfront when the goods are imported. 

We’ll show you how to record PVA transactions and make adjustments to your VAT return. If you’re on the Flat Rate Scheme, you: 

  • need to record the transactions as normal and manually adjust the return to keep your books accurate.
  • won’t be able to use the PVA import tax code. This is because there have been changes to how these transactions are recorded on the VAT return–but we’ll show you what you can do. 

Recording PVA transactions

  1. In QuickBooks Online, select + New.
  2. Select the transaction type: expense, invoice or bill.
  3. Enter the details of the transaction.
  4. In the Amounts are field, select if the transaction is Inclusive of Tax or Exclusive of Tax.
  5. In the VAT column, select 0.0% Z.
  6. Make a note in the memo field that this is a PVA transaction.
  7. Save and close the transaction.

Adjusting PVA transactions 

  1. Go to Taxes and then select the VAT tab.
  2. Select Prepare return on the open return.
  3. Adjust the following figures on the return to correctly record the PVA transaction using the adjustment options in the table.
    • Note: Depending on the transaction dates, there are two ways of reporting import goods that are non-reclaimable under the FRS on your return:

Tip: when adjusting figures in Box 1 and Box 4 on the return, make sure to include a tax rate of SS-20.0. Read HMRC's guidance.

Solution 1Solution 2Solution 3
ScenarioStandard import of goodsStandard import of goodsImports of goods reclaimable under FRS
Transaction date1 January 2021 to 31 May 2022 On or after 1 June 2022On or after 1 June 2022
Adjustments requiredBox 1
The VAT amount, at the flat rate percentage of your trade sector applied on the total value of all imports of goods in this period.

Box 6
Include the total value of all imports of goods in this period.
Box 1
Include the VAT due in this period on imports of goods accounted for through PVA.

Box 7
Include the total value of all imports of goods in this period, not including any VAT.
Box 1
Include the VAT due in this period on imports of goods accounted for through PVA.

Box 4
Include the VAT reclaimed in this period on imports of goods accounted for through PVA.

Box 7
Include the total value of all imports of goods in this period, not including any VAT.
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