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billygreenway
Level 2

Accounting for import VAT UK

Hi there,

 

I am trying to prepare my accounts to file a VAT return.  

I am importing items from China to UK and have to pay VAT on entry to UK.

The import of items can be broken down into two transactions:

  • 1) Payment of supplier for items (No VAT is paid in this transaction)
  • 2) VAT paid at import of items to UK

 

At the moment I am categorising transaction 1 as No VAT and transaction 2 as 100% VAT.  The problem with this method is that transaction 1 then doesn't show up in Box 7 "Net value of purchases".

 

What is the correct method to account for VAT in this case?

 

 

Solved
Best answer December 03, 2021

Accepted Solutions
Ashleigh1
QuickBooks Team

Accounting for import VAT UK

Hello Billygreenway, 

 

Welcome to the Community page, 

 

So for number 1 instead of putting it as NO VAT you would put it as Exempt and that would be required to show in box 7 for you. 

View solution in original post

1 REPLY 1
Ashleigh1
QuickBooks Team

Accounting for import VAT UK

Hello Billygreenway, 

 

Welcome to the Community page, 

 

So for number 1 instead of putting it as NO VAT you would put it as Exempt and that would be required to show in box 7 for you. 

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