Import VAT but not using postponed VAT accounting

AlexCross · ‎March 10, 2021

Hello Everyone,

We import items from our German office and thus have paid import VAT on these items. My question is how can I add this to QuickBooks so we can reclaim the full import VAT paid, as we have not used the postponed vat accounting system (AKA we paid the VAT before the items were released to us).

I have been reading through a lot of other topics but most seem to refer to postponed VAT accounting which doesn't help me add my Import vat to QuickBooks.

GeorgiaC · ‎March 10, 2021

Thanks for joining us here on the Community, AlexCross

You can enter a bill for 100% VAT which will then post to box 4 of your return to reclaim by following the steps outlined below:

1) Click on the + sign and select Bill

2) Enter the bill details (date, payment account) and set the VAT 'Amounts are' to 'Exclusive of VAT'

3) On the first transaction line, choose the account you want to use. For the rate, enter £0.01, and for the VAT code, select the 20% Standard code.

4) On the second line, select the same account. For the rate, enter -£0.01, and choose the Exempt VAT code.

5) Scroll to the subtotal - the total of the invoice will be 0. You can then edit the amount in the VAT box to input the amount you need, then save & close.

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Import VAT but not using postponed VAT accounting

Import VAT but not using postponed VAT accounting

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