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nicolad80
Level 1

Import VAT

Hi there,

 

Is someone able to advise me on the correct method for claiming back the VAT on Imports. We made a payment of Import Tax of £9k in February. How do I enter this payment into QuickBooks to show up correctly on the VAT return so we can reclaim this amount? What tax code do I use? I don't think I should use the PVA code as we are not set up for postponed VAT accounting yet plus we have made the payment to HMRC so need to reduce our VAT bill by £9k to get it back. We don't have a bill, just the Import Pre-Lodgement Advice detailing the amount due. I just want to book it correctly in QuickBooks so it's under the right VAT code and showing up on the VAT return.

Thanks in advance

Solved
Best answer May 06, 2021

Accepted Solutions
Ashleigh1
QuickBooks Team

Import VAT

Hello Nicolad80, 

 

Welcome to the Community page, 

 

So in order to record this in your Quickbooks, you would need ti enter it in as a 100% VAT bill. 

 

Here are the steps to record this in your account. 

 

1. click on the + new and choose bill 

2. put the supplier in 

3. on the first line of the bill choose any of your category

4. for the amount enter a pound(1) and choose 20% S as the VAT code 

5. on the second line choose the same category 

6. for the amount enter minus a pound (-1) and choose EXEMPT as a VAT code

7. the total of the bill will show as 0 

8. under the subtotal box the BAT box will become editable

9. enter the desired VAT amount into the VAT box and save the bill 

 

This will create a 100% VAT transaction for you  

View solution in original post

9 REPLIES 9
Ashleigh1
QuickBooks Team

Import VAT

Hello Nicolad80, 

 

Welcome to the Community page, 

 

So in order to record this in your Quickbooks, you would need ti enter it in as a 100% VAT bill. 

 

Here are the steps to record this in your account. 

 

1. click on the + new and choose bill 

2. put the supplier in 

3. on the first line of the bill choose any of your category

4. for the amount enter a pound(1) and choose 20% S as the VAT code 

5. on the second line choose the same category 

6. for the amount enter minus a pound (-1) and choose EXEMPT as a VAT code

7. the total of the bill will show as 0 

8. under the subtotal box the BAT box will become editable

9. enter the desired VAT amount into the VAT box and save the bill 

 

This will create a 100% VAT transaction for you  

View solution in original post

nicolad80
Level 1

Import VAT

Thank you for your help, that has worked Smiley Happy

Agata
Level 1

Import VAT

When I do it, I get £0.20 in point 7 and no BAT box appears. What am I doing wrong?

Ashleigh1
QuickBooks Team

Import VAT

Hello Agata, So yes on point 7 it will show as £0.20 if you click on VAT box* not BAT(i do apologizes for the miss spell there) then enter the amount you need it to be. If you still have any issues then please reach back out yo us again. 

Wholesale1
Level 1

Import VAT

How do I do this for a mixed invoice e.g. a clearing agent who charges eg £10 amount zero rated clearing fees and then £100 pure vat on the same invoice?

 

Thanks

 

 

GeorgiaC
QuickBooks Team

Import VAT

Hi Wholesale1, thanks for joining this thread

 

If your bill is split into two parts, we'd advise you to enter this on two separate bills, so that the 100% VAT element posts correctly to the return. 

 

After this, you can use the 'Pay bills' function (+ New > Pay bills) to record the single payment for both bills - please get back to us below if you have any Q's! 

Wholesale1
Level 1

Import VAT

Thanks for your answer

 

How do I enter 2 separate bills with the same invoice number? 

 

Also I have a duty deferment account and defer VAT monthly which is paid by direct debit. Can I instead just match the direct debit payment and break it down and match the supplier bills, otherwise it will come up twice right?

Ashleigh1
QuickBooks Team

Import VAT

Hello Wholesale1, You cant post it with the same bill number. You could record the gross value of the bill and post the individual payments against it.  The other option is to split it. If its for VAT purposes you should be on cash VAT, if thats the reason you want to split it.

Wholesale1
Level 1

Import VAT

Hi Ashleigh

 

Thanks for your response. However, think I'm slightly confused.

 

Our VAT accounting is done on accrual. 

 

As mentioned, we often get mixed invoices from clearing agents - eg £x for clearing at zero rate and £x pure VAT. I was advised above to enter this as two separate expenses in order to be able to record the pure VAT supplier invoice - one expense as pure VAT and one expense as customs clearing charges.  

 

The question was how do I create 2 expenses with the same bill number?

 

Secondly, we pay VAT via duty deferment monthly. Instead of just marking the two bills above as paid, I was proposing to match the monthly VAT and duty payment from my bank account against all the outstanding VAT bills. 

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