record an expense for import duty and vat

spsue · ‎September 27, 2020

Hi

I have an invoice to enter, I am using simple start so I have to enter as an expense but I am not sure how to enter this as the invoice is for Duty/deferment fee and vat.

Could someone please advise as to how I would record these 3 amounts and which VAT rate I would use on the Duty and Fees ie exempt/zero or no vat ?

Duty 61.51

Vat 363.80

Def fee 15.00

many thanks

Mark_R · ‎September 27, 2020

Welcome to the Community, @spsue.

You'll have to create a 100% VAT Expense if you'd like to claim back the VAT. Let me guide you through the steps.

In your QuickBooks Online (QBO), click the + New button and select Expense.
Choose the vendor (HMRC) in the Payee drop-down.
Enter the payment date the amount was debited from your account.
In the Amounts are drop-down, select Exclusive of Tax.
Select purchases or another expense account from the Category column.
Enter 0.01 in the Amount column, then select 20.0% S from the VAT column.
On the second line, use the same expense category and enter -0.01 in the Amount column.
Select Exempt or No VAT from the VAT column.
Then, enter an amount in the VAT box and Save and close.

Once done, it'll help you create a 100% VAT transaction.

Most importantly, I still recommend checking with your accountant. This way, they can give you some advice on what VAT codes to use base on your recording practices.

Please feel free to keep in touch with me here if you have other questions with VAT returns. I'm always around if you need any help.

View solution in original post

GeorgiaC · ‎November 25, 2020

Hi zoe-walker50,

In the scenario above the 100% VAT invoice would be to record the VAT of 363.80, the additional charges can then be entered on a separate expense transaction.

Thanks!

View solution in original post

Mark_R · ‎September 27, 2020

Welcome to the Community, @spsue.

You'll have to create a 100% VAT Expense if you'd like to claim back the VAT. Let me guide you through the steps.

In your QuickBooks Online (QBO), click the + New button and select Expense.
Choose the vendor (HMRC) in the Payee drop-down.
Enter the payment date the amount was debited from your account.
In the Amounts are drop-down, select Exclusive of Tax.
Select purchases or another expense account from the Category column.
Enter 0.01 in the Amount column, then select 20.0% S from the VAT column.
On the second line, use the same expense category and enter -0.01 in the Amount column.
Select Exempt or No VAT from the VAT column.
Then, enter an amount in the VAT box and Save and close.

Once done, it'll help you create a 100% VAT transaction.

Most importantly, I still recommend checking with your accountant. This way, they can give you some advice on what VAT codes to use base on your recording practices.

Please feel free to keep in touch with me here if you have other questions with VAT returns. I'm always around if you need any help.

spsue · ‎September 28, 2020

Thank you for your reply, could I just ask about the vendor, my purchase invoice is from and has been paid to DHL do I record this vat expense to HMRC and not to DHL?

many thanks

Ashleigh1 · ‎September 28, 2020

Hello Spsue,

Thanks for coming back to us,

A 100% vat transaction will show on your VAT return to HMRC.

We are not trained accountants and of you are unsure how to record this vat and what codes and that to pout we suggest you speak to an accountant who will be able to assist you with this query.

zoe-walker50 · ‎November 25, 2020

The duty and def fee is not VAT so be careful not to reclaim that as if it was.

zoe-walker50 · ‎November 25, 2020

Surely it's not a 100% VAT invoice as some elements are not reclaimable as VAT. It would be helpful if this could be clarified in the workings.

GeorgiaC · ‎November 25, 2020

Hi zoe-walker50,

In the scenario above the 100% VAT invoice would be to record the VAT of 363.80, the additional charges can then be entered on a separate expense transaction.

Thanks!

UKMaster · ‎February 25, 2022

Started new thread here: https://quickbooks.intuit.com/learn-support/en-uk/vat/entering-duty-vat-deferment-processing-fee-inv...

Whistling Dixie · ‎May 18, 2022

Hi Mark

Thanks for the in depth explanation.....I have just tried to go through the process. When I got to the point where I add an amount in the VAT box, I put the amount I am trying to add in my accounts, hit 'Save and Close' and it just said that it has been saved, but not sure where? Any ideas

Best regards

Malcolm

GlinetteC · ‎May 18, 2022

Hello, Whistling Dixie.

I'm here to help you where to find your saved transactions in QuickBooks Online.

QuickBooks has the Search feature so you can find transactions easily. I'll walk you through the steps:

Select the Magnifying glass from the upper right corner.
Click on the Advanced search hyperlink.
Search the transaction by custome name, vendor name, or transaction type.
Tap Search.
Select the Date Filter and click Apply.

The following steps will help you locate your saved transactions in QBO.

You can also visit our QBO Help page. This provides video tutorials and articles that can help you on future tasks for reference.

The Community is always open. You can come back to this thread if you have any additional questions.

Whistling Dixie · ‎May 19, 2022

Hi

Thanks for coming back to me.......I still couldn't find the entry using your guidance so decided to try and go through the process again and once we did, it took us back to the last attempt at setting up the 100% tax bracket. However, we are still no further forward.

What I want to do is create a 100% tax bracket to apply to part of a payment I have made when importing goods.....the payment needs to be split into 3 parts....which is no problem.....2 parts of which have 0% tax and the 3rd part is a 100% vat payment to the revenue. If I apply the vat options available the system will only apply 20% of the VAT I have paid

Please can you let me know how I can do this?

Many thanks

Malcolm

Mark_R · ‎May 19, 2022

Thank you for getting back to us and sharing the result of the steps provided by my peer above, Malcolm.

I'd be happy to help you find the entry you've entered and create a 100% tax bracket for a part of a payment.

Utilizing the Advanced Search option should help you find the expense you created. Since you haven't seen it from there, you can go to the Expenses menu and look for the transactions. I'll attach a screenshot below for your visual reference.

If you're unable to see it from the Expenses menu, let's go to the Audit log to verify if the transaction was really created. Here's how:

Click the Gear icon, then select Audit log.
From the Date changed drop-down, choose the date range when the expense is created.
Then, select All transactions from the Events drop-down.
Once done, you can review the transactions and look for the created expense.

If the expense still isn't showing, it means that it wasn't created. You'll want to create a new one and ensure you save it.

On the other hand, I recommend seeking help from your accountant on creating a 100% tax bracket for a part of a payment. Please know that QuickBooks apply VAT to the entire transaction and not on each line item. Thus, it may require you to ask for an accountant to properly record your taxes. If you don't have an accountant, you can find one through this link: Find an accountant near you.

You may need assistance submitting MTD for your VAT return to HMRC. This article will help you know what you need to do before submitting it: Submit a MTD for VAT return to HMRC in QuickBooks Online.

The information and steps I shared above should get you on the right track, Malcolm. If you have other concerns with QuickBooks Online, especially with taxes, I'm always around here to help.

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record an expense for import duty and vat