Hello All,
I am attempting to enter the Import VAT transactions based off of the monthly PVA statements.
I have a purchase order from June, with payments made in October, November and December. It was from an EU supplier and liable for Import VAT upon importation. When entering the original PO and supplier bill, I selected the zero-rated tax code.
To account for the import VAT (imported in October), I created a new bill with two lines:
Line one = £43,301.80 with PVA 20% tax code resulting in the correct amount of tax payable.
Line two = -£43,401.80 with NO VAT tax code to cancel out the total amount and leave VAT remaining.
Everything is correct on the VAT return except Box 7. It now includes the total invoice amount from the Import VAT bill (even though the total is 00.00 in the bill, in Box 7 it is listed as £43,401.80) and also the 4 invoice payments made to the supplier to pay for the goods during OCT-DEC. This means that the invoice total is included in Box 7 twice.
Is there a different way to do this where Box 7 is not overstated?
Thank you in advance,
Kind Regards,
Dan
