Question

Import Charge Invoice - PVA

Forum|Forum|1 year ago
November 14, 2024
2 replies
21 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.

K

KimberlyS

Moderator

You can ensure you're logged in to the QuickBooks Community, HM2019. I'm here to provide the necessary troubleshooting so that you can obtain relevant information to address your queries.

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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

Thanks again for your reply,

The problem I have is the supplier bill is foreign currency and multiple line items of different products.

I have always included import VAT on the courier customs invoice (Separate to the courier shipping invoice) as that is where the VAT is charged. I am not paying VAT on the supplier bill as its not a UK supplier.

In this case I would still like to apply the VAT element to the courier bill of import charges like I always have done. Using your example............

Courier Bill:

Line 1 Duty - Code Z - Done

Link 2 Handling Charge - Code Z - Done

Supplier Bill: - In this case USD (No VAT paid to supplier)

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.

Its the courier that handles the import clearance and import / VAT charges.

If I am reading this right can I add a line on the courier bill of import charges for "import VAT" £2500 PVA so it gives the correct amount of £500 VAT on the PVA statement and the VAT is calculated from an invoice value of £2500, or will this cause the overall values to be over stated on the VAT return? The reference / memo I use is the shipping number the import charges relate to.

I have never needed to account for PVA before so just trying to make sure I do this correctly as its a bit different to how I account for conventional VAT payments.

Thank you

Hi @HM2019

You could try-

Courier Bill:

Line 1 Duty - Code Z

Link 2 Handling Charge - Code Z

Line 3 Goods Amount £2500 - Code PVA20 (to give £500 nominal PVA VAT)

Line 4 Negative Goods Amount -£2500 (Z0 or Exempt) to leave the Courier Bill at the correct value.

**but I have serious doubts that the VAT Return will be wrong & I am not in a position to satisfy myself about it for at least a week. I'm sure the VAT side of it will be correct, but I worry that one of Sales or Purchase Totals will be incorrect because the PVA VAT codes in QBO are not straightforward codes - they are Code Groups, two VAT Codes in one which, together, create the debits/credits on the VAT Return to give overall £nil effect.

The correct way is to use PVA VAT codes on every line of the Supplier Bill in QBO. Even if you have to fiddle it a bit to get the correct figures. Although you say "I am not paying VAT on the supplier bill as its not a UK supplier" it's those goods that give rise to the Nominal PVA VAT - not the Courier's Bill. Adding to the Courier Bill means you risk double counting the £2500.

Using PVA VAT codes has £nil effect on the Supplier Bill - so won't leave you with any balance owing to the Supplier. Granted, it's fiddly to have USD & GBP amounts but QBO should be able to handle it (I don't use multicurrency but it's how VAT works so I'm guessing QBO is up to scratch).

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