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Hi all,
This is my first post here, so if I make an error of etiquette, please bear with me.
Here is my problem:
I ordered parts from China via AliExpress. I paid the requested amount, which covered the products and the shipping. So far so good.
As expected I then received an invoice from FedEx for import duty and (here’s the issue) the VAT.
So, I have an invoice for £57.85 from FedEx of which £41.35 is VAT. I tried to post the £41.35 directly into the VAT Control account but probably not surprisingly the system said, “No” …
I considered adding the £57.85 to the original invoice from AliExpress but that feels wrong because I have an invoice from FedEx.
All and any (helpful) thoughts would be much appreciated.
Thanks
Let me help you record the VAT you've paid, Essig-Meister.
You can create an expense transaction to record the VAT payment you've made to HMRC. Let me walk you through how to do it.
Before proceeding, make sure you already have an Expense account. It's used to track the VAT payment. Here's how:
Once completed, you can create an Expense or Cheque transaction to record the VAT Payments. Here's how:
On the other hand, you can follow the steps below to record VAT payments in QuickBooks.
Aside from the steps I've given above, you need to mark the VAT return of those dates as Filed. This way, we'll have the correct reporting. I'm adding these articles to help you manage VAT in QuickBooks.
I'll be around if you need more help about tracking your VAT-related transactions. I'm always here to help you.
Hi MaryLandT,
Thanks for your reply.
Just to be clear I have paid the VAT to FedEx and so am now looking to reclaim that figure from HMRC. The problem I have is that the amount of VAT on the FedEx invoice amount to 71.4% (rather than the "normal" 20%). In other words, if I enter the £57.85 as the invoice total QB would expect the VAT to be £11.57 rather than the £41.35 that has actually been charged.
Do any or all of your suggestions achieve this?
Many thanks!
Thanks for getting back to us, @Essig-Meister.
I can share additional information that can help you record your VAT transaction.
You can create an expense and enter it as Exempt for the VAT code or adjust the VAT option. For detailed guidance about these two methods, check out this article: Enter a 100% transaction in QuickBooks Online. You can choose which method works best for you.
I still advise consulting with your accountant. They can give you some advice on what VAT codes to use based on your recording practices.
When you make a VAT payment to HMRC or receive a refund from them, here's how to record them in your account: Record a VAT payment or refund in QuickBooks Online.
Let me know if you have other questions about VAT returns. I'm always around if you need any help. Have a wonderful day!
There are quite a few posts on here relating to Import VAT (& Duty if applicable).
Two recent ones...
or,
Enter the Expense from FedEx.
Either go by QBOs Method 1 - altering the VAT box on the Expense directly - or by adding to the split lines on the Expense.
Hope this helps.
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