Question

Import Charge Invoice - PVA

Forum|Forum|1 year ago
November 14, 2024
2 replies
36 views

Hi,

I posted this once but looks like it got deleted. I have always been opted out of the PVA scheme and do my VAT returns the old fashioned way of paying import tax in full and reclaiming in the VAT return. Recently a courier company messed up and processed the import using PVA.

I am having trouble entering the customs invoice for PVA VAT.

I have an invoice from the courier company for duty and clearance fees. I need some help on how to deal with the VAT using the PVA scheme. As an example.......

Duty - £25 Code

Clearance Fee - £12 Code Z

PVA VAT - £500 How do I include this on the courier bill so VAT is calculated correctly using PVA? When I enter £500 and select PVA 20% it just shows a VAT amount of £100 and -£100 in the VAT boxes. I need the full £500 to show.

Any help or suggestions as 1.5 hours on the phone to Quickbooks didnt help solve the problem.

Thank you

QuickBooks Online

R

RheaMaeH

QuickBooks Team

Hello there, HM2019.

I can see you've already posted your concern here in the Community forum about including PVA VAT amounts on invoices in QuickBooks Online (QBO). I'm pleased to inform you that one of my colleagues has provided a solution to address your concern efficiently.

I'll be glad to route you to her suggestion. Kindly see the link below:

https://quickbooks.intuit.com/learn-support/en-uk/invoices/re-entering-customs-invoice-for-pva/01...

Keep in touch if there's anything I can assist you with regarding entering PVA VAT on invoices. We're here to help in all possible ways to get you back to business.

H

HM2019Author

The link does not work. It looks like my original post has been deleted. That is why I posted this one.

C

CharleneMaeF

QuickBooks Team

The link does not work. I am signed in and when I go to "My Profile - My Posts" This is the only post showing. The previous one does not show.

If it is still there and you are able to see it please screenshot or copy / paste the reply into this post so I can view it. Thank you

Thanks for getting back to this thread and for the additional info, HM2019.

Since you're unable to access and view your other post, I've copy-pasted them below so you can read my colleague's response (I've italicised them so you can identify their answer):

I can see that opting out and using the traditional method can be quite different from the newer processes introduced with PVA. It's all good, and I'd be glad to help you how to include the PVA VAT amount on the invoice, @HM2019.

To answer your question about how to include the £500 VAT on the invoice for PVA purposes, please follow the steps below.

First, Let's create a new invoice since the courier invoice was issued after the import, you can create a new one in QuickBooks Online (QBO) specifically for this transaction.

Second, list the duty and clearance fees as separate line items on this new invoice:

Duty: £40 (Code Z)
Clearance Fee: £12 (Code Z)

Third, add a line item for the VAT amount by creating a new line item for the VAT of £500:

VAT: £500 (ensure this is categorized correctly for PVA purposes)

Lastly, review the invoice to ensure everything is correct, then save it.

I'll also add this beneficial article that can guide you with VAT codes in QBO: A complete guide about VAT codes.

Here's an article you can use that provides you with a summary of information for each box on the VAT return: VAT Summary Report.

Click the Reply button for additional assistance you may have with entering PVA VAT on invoices or other QuickBooks queries. I'm a few clicks away.

You can also contact our Live QuickBooks Support Team so you can enter the customs invoice for PVA VAT. They have tools to access your account securely and provide the correct way to add the data in QuickBooks Online.

Here's the step-by-step process to get a representative:

Click this link: https://intuit.me/CU.
Select the product you're using and the edition.
Enter a summary of your concern in the What's your question? field.
Click Continue.
Choose how you would like to connect with us.

You can also contact our support team inside the QuickBooks program. For the detailed steps, please check this article: QuickBooks Support.

Please know that you can always get back to this thread if you have other questions or concerns about managing VAT and sales transactions. I'll be around to provide the information you need.

paul72

Level 6

Hi @HM2019

Have you actually paid the £500 VAT to the courier?

If you have paid it to the courier, it's not PVA & you should enter into QBO on two lines:

(1) £2500 VAT=S20

(2) minus £2500 VAT=Z0 or Exempt

This will leave a nett VAT of £500 in QBO.

If the £500 VAT is just the nominal figure they say you need to account for, this is PVA & you should do this in QBO on the Supplier's Bill using PVA20 VAT Code.

Note - you may need to add an adjustment line (Z0 or Exempt again) on the Supplier's Bill if the amount is not exactly £2500.

Note 2 - you can download C79 or PVA Statement from HMRC website

Hope this helps.

H

HM2019Author

Thanks for your reply.

No I havent paid VAT to the courier. I am opted out of PVA but the courier messed up and processed the import using the PVA scheme so I now need to account for this in Quickbooks.

The courier bill is for duty and clearance handling charges. I also have the PVA statement from HMRC.

My normal process with a NON PVA import bill is

Line 1 Duty - Code Z

Link 2 Handling Charge - Code Z

VAT +£1 - Code S 20%

VAT - £1 - Code E Exempt - I then enter the total VAT amount in the VAT box in the bottom right corner (£500).

I am trying to get them same result for this bill but for PVA. The problem with using the PVA code is it doesnt calculate correctly for what I am trying to acheive.

If I enter a line on the bill for £500 with the PVA code the VAT boxes in the bottom corner show £100 / - £100 when the total PVA amount is £500.

Its hard to explain in writing but hopefully this makes sense.

paul72

Level 6

OK @HM2019 - that's the same as my second example.

The PVA VAT needs to go on the Supplier's Bill in QBO - not on the Courier's Bill like you'd usually do when actually paying the VAT to the Courier.

Courier Bill:

Line 1 Duty - Code Z

Link 2 Handling Charge - Code Z

Supplier Bill:

Line 1 Goods Amount £2500 - Code PVA20 (to give £500 nominal PVA VAT)

Line 2 (if required) - balancing amount (Z0 or Exempt) to leave the Bill at the correct value.

The Line 2 on the Supplier Bill is needed because the courier does not always report the correct amount to HMRC - there is often a small amount added to cover processing / delivery / statistical rounding - which means that the VAT you pay (or don't in the case of PVA) is not exactly 20% of the amount you paid to the Supplier's.

Hope this helps.

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