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spsue
September 27, 2020
Solved

record an expense for import duty and vat

  • September 27, 2020
  • 2 replies
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Hi 

I have an invoice to enter, I am using simple start so I have to enter as an expense but I am not sure how to enter this as the invoice is for Duty/deferment fee and vat. 

Could someone please advise as to how I would record these 3 amounts and which VAT rate I would use on the Duty and Fees ie exempt/zero or no vat ?

Duty 61.51

Vat  363.80

Def fee 15.00 

 

many thanks 

Best answer by Mark_R

Welcome to the Community, @spsue.

 

You'll have to create a 100% VAT Expense if you'd like to claim back the VAT. Let me guide you through the steps.

 

  1. In your QuickBooks Online (QBO), click the + New button and select Expense.
  2. Choose the vendor (HMRC) in the Payee drop-down.
  3. Enter the payment date the amount was debited from your account.
  4. In the Amounts are drop-down, select Exclusive of Tax.
  5. Select purchases or another expense account from the Category column.
  6. Enter 0.01 in the Amount column, then select 20.0% S from the VAT column.
  7. On the second line, use the same expense category and enter -0.01 in the Amount column.
  8. Select Exempt or No VAT from the VAT column.
  9. Then, enter an amount in the VAT box and Save and close.

Once done, it'll help you create a 100% VAT transaction.

 

Most importantly, I still recommend checking with your accountant. This way, they can give you some advice on what VAT codes to use base on your recording practices.

 

Please feel free to keep in touch with me here if you have other questions with VAT returns. I'm always around if you need any help.

2 replies

M
Mark_RAnswer
September 27, 2020

Welcome to the Community, @spsue.

 

You'll have to create a 100% VAT Expense if you'd like to claim back the VAT. Let me guide you through the steps.

 

  1. In your QuickBooks Online (QBO), click the + New button and select Expense.
  2. Choose the vendor (HMRC) in the Payee drop-down.
  3. Enter the payment date the amount was debited from your account.
  4. In the Amounts are drop-down, select Exclusive of Tax.
  5. Select purchases or another expense account from the Category column.
  6. Enter 0.01 in the Amount column, then select 20.0% S from the VAT column.
  7. On the second line, use the same expense category and enter -0.01 in the Amount column.
  8. Select Exempt or No VAT from the VAT column.
  9. Then, enter an amount in the VAT box and Save and close.

Once done, it'll help you create a 100% VAT transaction.

 

Most importantly, I still recommend checking with your accountant. This way, they can give you some advice on what VAT codes to use base on your recording practices.

 

Please feel free to keep in touch with me here if you have other questions with VAT returns. I'm always around if you need any help.

S
spsueAuthor
September 28, 2020

Thank you for your reply, could I just ask about the vendor, my purchase invoice is from and has been paid to DHL do I record this vat expense to HMRC and not to DHL?

many thanks

    A
    Ashleigh1
    September 28, 2020

    Hello Spsue, 

     

    Thanks for coming back to us, 

     

    A 100% vat transaction will show on your  VAT return to HMRC. 

     

    We are not trained accountants and of you are unsure how to record this vat and what codes and that to pout we suggest you speak to an accountant who will be able to assist you with this query. 

    G
    GeorgiaC
    November 25, 2020

    Hi zoe-walker50,

     

    In the scenario above the 100% VAT invoice would be to record the VAT of 363.80, the additional charges can then be entered on a separate expense transaction. 

     

    Thanks!

      U
      UKMaster
      February 25, 2022

      Started new thread here: https://quickbooks.intuit.com/learn-support/en-uk/vat/entering-duty-vat-deferment-processing-fee-invoice/01/1043555

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