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RosieC
Level 2

VAT & Brexit

Hi Rachel

Thanks for your help. You're the first person to actually offer a practical solution which is what i need.

That does seem like it would work. I'll give it a try :-)

I was wondering if there was a way I could add the PVA VAT as a lump sum for a whole month? maybe make HMRC a supplier rather than add VAT to all the individual suppliers invoices and hope it matches to the PVA report.

We have a lot of international transactions so i'm really worried about starting off on the wrong foot.

Also for some we are paying the VAT direct to the carriers before it gets here and others have now noted we're on PVA so we get a VAT statement later.

Many Thanks

Rosie 

 

 

CarmenNovo
Level 2

VAT & Brexit

I think what is important and matters the most in the end is how you declare figures on the VAT return in Box 1, Box 4 and Box 7 and simply to get at least the same amount of the total VAT postponed figure showing on the PVA statement from CDS in Box 1 and 4 of your vat return. Now I could see that on the PVA statements it shows only the total VAT postponed and not the net figure of goods which normally will go in Box 7 of the vat return. 

It’s up to you now really how you get the net figure of goods which will go in Box 7, either from supplier’s invoices, another way could be from the CHIEF DTI-E2 (Import Entry Acceptance advice ) you will normally receive it from your custom agent , it shows in there how they calculated and got to the postponed VAT import figure on the PVA statement, what goods are 0% or 20%.

Then when you enter the Supplier invoice in QB or you can split the expense from bank you can choose PVA 20% or PVA0% codes ( when they will work), to get to the amount you need in BOX 1 and Box 4 . Box 7 could have PVA 20% or PVA0% , as I said look at that CHIEF DTI-E2 statement . In Box 7 as I said you can have a mixture , put PVA20% first what you need and the rest as 0% , but those CHIEF DTI-E2 forms are quite good.

Let me know if it works for you.

Rachel_7
Level 1

VAT & Brexit

Hi Carmen

 

I agree but my issue is that I haven't received 1 CHIEF DTI-E2 form from our customs agent as they are 'swamped' apparently. Also won't the amount they give be in euros? as the online statements are in Stirling which also mess my figures up. (My quickbooks is set up in Stirling using monthly HMRC exchange rates)

 

CarmenNovo
Level 2

VAT & Brexit

Hi Rachel ,

 

I've seen them they are in GBP . At some point there it will be some conversion anyway. But I was thinking as well maybe if all net goods will be put as 0%PVA either as an invoice or expense from bank and at the end of the month we will get the PVA statement and add only an expense using adding and subtracting amount ( this will only populate Box 1 and Box 4 with the total VAT postponed from the PVA statement ), there will be nothing due to pay as expense will be 0 at the end , you can choose cash as an account etc ?!

1000+PVA20%    it will populate Box 1 and Box 4 with 200 

-1000 and no VAT code 

 

Box 7 will be all net figure from net goods entered as 0% PVA ?! 

 

 

 

Rachel_7
Level 1

VAT & Brexit

Hi

 

I've managed to get one for when a supplier organised transport, but not for the goods that went through our transport company as delaying customs declarations. If I estimate the import VAT for the delayed ones that arrived in January this then won't match the online statement as they aren't on it. Is that okay do you know?

 

Also we have had one lot of goods where we had to pay import VAT at the border (long story) so it isn't postponed and the amount is on our C79 form... what vat code would I use for this as I can't use PVA??

 

I feel like I'm getting somewhere then I get more issues.... any one else debating a career change after this!? Smiley Very Happy

RosieC
Level 2

VAT & Brexit

Hi Rachel,

That's exactly my query.

My PVA VAT statement has lots of transactions missing. Some must be being delayed i suppose??

I assume they will turn up on a future PVA statement??

I'm not 100% sure but I think our VAT return is supposed to match the PVA statement exactly? then we adjust it on the next one if the missing transactions turn up on the PVA download from HMRC? 
(However HMRC does mention somewhere about estimating PVA figures if VAT is delayed) Its all so confusing!!!

 

I was just going to enter all Imports/expense where I know the VAT is going to be postponed as PVA0% then do what Carmen said and adjust the relevant ones to match the PVA statement when that turns up.

 

We also pay a lot of VAT up front at the border to DHL or UPS so I was thinking we can claim that back  in the normal way and just adjust the VAT amount box in the DHL bill/expense?

 

I've been looking at Xero videos and they have a tool that makes an adjustment on their VAT return to match the PVA statement.

 

Rosie

 

 

CarmenNovo
Level 2

VAT & Brexit

Hi Rachel,

 

I think HMRC says that you can estimate as well, and adjust it later .

 

Regarding C79 import vat paid , you have to choose the standard 20% VAT so it will go in Box 4 ( to be able to reclaim it)   but you have to gross it up when you enter as a bill ,for ex if on the C79 it shows £200 total import vat to reclaim back, you will have to enter : 

                                       1000 choose 20%vat code =1200 ( 200 will populate Box 4 and 1000 Box 7)

                                       on the next underneath line you minus   -1000 choose no VAT code or 0%VAT 

                                       200 will be left to allocate to the payment from bank when you paid initially the import duty. If its together with supplier invoice and other you paid you will have to split it.

 

 

RosieC
Level 2

VAT & Brexit

Hi Carmen,

Sorry if i've got the wrong end of the stick here, ref import vat paid at the border - If you gross up on the DHL bill/expense to get the VAT figure you want to reclaim as you suggest, then wouldn't this record the net goods purchased figure twice in Box 7 potentially?
The DHL/UPS invoice will come through as a duty and VAT invoice only.
The net goods will already be invoiced separately from the international supplier and if they're entered with PVA 0% then the net goods figure will show in box 7.

So you wouldn't want to enter additional values for purchases surely??

Just trying to get my head round this 

Rosie

 

RosieC
Level 2

VAT & Brexit

Ignore last post 

Ive just realised the -1000 with a 0% vat code takes it off box 7

Rachel_7
Level 1

VAT & Brexit

Carmen, you are a life saver - I think I've pretty much sorted the VAT return now!!

 

I only have one last issue that if you know the answer you're an actual genius... Goods shipped in December from EU to UK used an ECG 20% code. Now in January there is a small credit note but the goods aren't being shipped back. I've put 0% Z at the moment and no idea if that's correct?

 

Rach

CarmenNovo
Level 2

VAT & Brexit

Hi Rachel,

 

I would say if its a small amount put 'no VAT' code so it will not appear on your VAT report in Box 9 and 2 as minus figures (I believe this is your issue ), but keep the same nominal account as you used before (i believe you used purchases), so your accounts will be correct.