Import Charge Invoice - PVA

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.

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

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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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.

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.

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:

1. Click this link: https://intuit.me/CU.
2. Select the product you're using and the edition.
3. Enter a summary of your concern in the What's your question? field.
4. Click Continue.
5. 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.

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.

the Supplier's.  the Suppliers.

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

Thank you for the detailed explanation of your current process, @HM2019. Let me share some information about this. 

Your efforts in managing VAT for your supplier and courier bills are commendable, and you're already on the right path. By continuing to follow the steps you outlined, you can rest assured that your records will remain compliant with all necessary regulations.

To ensure accuracy and consistency in your financial reports, it is advisable to consult with a qualified accountant. They can provide expert guidance on tax compliance, verify the accuracy of your financial data, and identify potential discrepancies. To find one, here's how: 

1. Visit this website: Find an accountant or bookkeeper near you.
2. From the Location field, enter where you live.
3. Choose the right information from the Service provided and Industry served. 
4. Once done, go to the Product supported dropdown and select the software you're using.
5. After that, click Search. 

You can also read this article to learn more how to electronically submit your VAT return to HRMC using QuickBooks: Submit a VAT return to HMRC using MTD in QuickBooks Online. 
 

If you have further questions as you move forward, please feel free to reach out, @HM2019. The Community space is always around.

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).

Thanks again,

If you are able to check that would be great!! Quite happy to send you some ££ by PayPal for your time if you are able to confirm a solution for me. I already spent over 1.5 hours on the phone to QB support and got nowhere. The reason I stayed "opted out" is to keep my VAT returns simple because PVA causes no end of problems for me with foreign currency etc.

I have far too many imports to deal with and dont have the time or motivation to adjust each supplier bill manually so everything balances correctly with foreign currency. The best solution for me is to have one bill from the courier for import charges and account for the PVA VAT on there as a total amount for that specific import.