How to capture Customs VAT so the amount is allocated to the VAT control account?

We're thrilled to welcome you here in the Community, Kerry. Let's discuss how you can effectively track the VAT you paid, ensuring they're mapped to the appropriate account and blocks on your return.

In QuickBooks Online, the tax codes mapped to Block 15A are SIO or Old Standard Imports on transactions and SIN or Standard Imports. If unsure which one to use, I recommend seeking advice from your accountant.

With that said, you'll want to edit your bill to make sure the appropriate tax code is utilised so amounts will be posted to the correct account and blocks. Here's how:

1. Select Expenses, then Expenses.
2. Choose Bill from the designated drop-down and use the Filter to narrow down the result.
3. Locate the bill, then click View/Edit from the Action column.
4. In the Category details or Item details section, pick the correct rate in the VAT column for every item.
5. Click Save and Close.

It's also worth noting that the default account in QuickBooks for VAT from sales and purchases is the VAT payable. If you have another dedicated VAT control account for recording purposes, you can transfer the amount from the VAT payable account using a journal entry.

Once you're ready to settle your tax liabilities, you might find this resource beneficial: File your VAT return and record VAT payments in QuickBooks Online.

For additional questions regarding customs VAT, please click the Reply button below and tag us in the Community. We're always around to help you with any of your concerns related to QuickBooks Online.

Thank-you for the response.  Please advise what SIN is as we did not see this in our list of codes?  We used the standard Import code, but the rate is 15% so the VAT is not calculating correctly. 

As mentioned by my colleague, SIN refers to Standard Imports, which is the same tax code you're currently using. So you're on the right track there.

To better understand why the VAT is not calculated correctly, could you please share the total amount on the invoice and the taxable amount that QuickBooks is using to calculate the VAT? It will help us determine whether the 15% rate is being applied to the correct base amount or if there is a discrepancy in how the system is interpreting the figures.

Also, please note that when a VAT amount is manually specified during the importation process (for example, if your importer provides a set VAT value), QuickBooks Online will override its automatic calculation. It is designed to accommodate rounding differences or adjustments from third-party systems.

In the meantime, you can check out this article to see the frequently asked questions about importing data: Common questions about importing data to QuickBooks Online.

The Community team will be on the lookout for your response. We'll gladly help you.