I need to record the VAT paid during customs clearance on an import from EU. The amount was paid directly by ParcelForce on my behalf. Then I got the invoice from them and paid VAT and custom clearance fee from my bank account to ParcelForce. How do I record it in QB?
Hello IwonaR, Have you already recorded the purchase and are you just needing to record the VAT as a 100 percent VAT transaction? If so, you can easily enter a VAT only transaction. To do this, click on the+ sign and select the transaction type that you need.
One the first transaction, choose the account you want to use. For the rate, enter £1, and for the VAT code, select the 20% Standard code.
On the second line, select the same account. For the rate, enter -£1, and choose an Exempt code.
The total of the invoice will be 0. You can then edit the amount in the VAT box to whatever you need it to be.
Yes. I paid purchase invoice, which is for books from Poland. Should be VAT 0% as books are 0% rate. Nevertheless I was charged 20% of the total amount of the purchase invoice by ParcelForce plus custom clearance fee.
How do I record ParcelForce invoice - 20%VAT plus custom clearance fee?
Thanks for keeping us updated. I can share some tips in handling this transaction.
Usually, VAT is imposed and collected on every sale, exchange, or transaction (deemed sale) of taxable goods. Recording this type of bill for a VAT-only transaction needs to have 2 line items.
On the first line of your bill, you can select 20% VAT for the imported books. Then, add the custom clearance fee as the second item and set the status to No VAT (0%). Take note that you may need to create a dedicated expense item for the clearance fee first if don't have one.
Though I still recommend consulting your accountant to ensure that everything is recorded accurately. They can guide you further in recording this purchase to ensure that your records are accurate and you won't mess your VAT returns. If you're not affiliated with one, you can use our Find a Pro-Advisor Tool to look for an accountant near your area.
Additionally, here's an article that you can read to help manage your VAT setup and transactions in QuickBooks: VAT codes and rates.
Do you have other pending tasks that need to be completed today? Feel free to visit our Help Articles page to browse for a reference.
Please don't hesitate to post here again if you need more help in recording your purchases. I'm always here to help you in any way I can.