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Daniel0711
Level 1

PVA Import VAT - completing VAT return

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

Solved
Best answer January 07, 2022

Accepted Solutions
EmmaM
QuickBooks Team

PVA Import VAT - completing VAT return

HelloDaniel, Thanks for your query regarding box 7. In the transaction where you have used the NO VAT code can you change that to the EXEMPT code that should then impact the boxes as you want. Any questions let us know.

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2 REPLIES 2
EmmaM
QuickBooks Team

PVA Import VAT - completing VAT return

HelloDaniel, Thanks for your query regarding box 7. In the transaction where you have used the NO VAT code can you change that to the EXEMPT code that should then impact the boxes as you want. Any questions let us know.

paul72
Level 8

PVA Import VAT - completing VAT return

Hi @Daniel0711 

 

Think of it like this: your line two from the October transaction needs to completely cancel the original June entry (as, strictly, that was an incorrect entry).

So, line two ought to be entered with the same "zero-rated tax code" you used in June.

 

Personally, I try never to use NoVAT code on any buy/sell transaction for this reason - it removes the line from the VAT100 completely.  Only use NoVAT on transactions that you don't want/expect to see on the VAT return.

 

Hope this helps.

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