Output VAT on Imported services
Hi, I hope someone can assist.
My client used FIVERR (US based company) for remote administrative tasks.
The advice I received on how to process the VAT is as follows:
It is deemed to be an import so there's Output VAT, and how it is calculated is as follows:
Add 10% to the amount paid and then calculate VAT at 15%.
For example, if client paid $10, when translated to Rands, it's about R200, add 10% and that gives you R220. Multiply R220 by 15% which is R33 which will be Output VAT.
The problem comes in when capturing the above transaction in QuickBooks as an expense. If I select standard import in the VAT field, it processes it as Input VAT and not Output VAT.
Does anyone have any knowledge on VAT on imported services and how it should be processed in Quickbooks?
Thank you.