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R
RoryBlack
April 13, 2021
Question

How to account for a supplier VAT only invoice

  • April 13, 2021
  • 1 reply
  • 0 views

When product goes into a bonded warehouse both excise duty and VAT is suspended.

When we take the product out of the bonded warehouse excise duty + VAT is payable; BUT also further VAT is payable on the "notional" cost of production...how do I have a VAT only line when accounting for the Bill or indeed account for a VAT only Bill ?

 

1 reply

G
Giovann_G
April 13, 2021

Hi, RoryBlack.

 

I can share the steps to enter a VAT-only bill.

 

You'll have the create a VAT-only transaction in QuickBooks Online(QBO). I'll show you how.

 

1. Click on the + sign, then select Bill.

2. Enter the bill details (date, payment account) and set the VAT 'Amounts are' to 'Exclusive of VAT'.

3. On the first transaction line, choose the account you want to use. For the rate, enter £0.01, and for the VAT code, select the 20% Standard code.

4. On the second line, select the same account. For the rate, enter -£0.01, and choose the Exempt VAT code.

5. Scroll to the subtotal - 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.

 

If you're unsure of what account to use. I suggest reaching out to your accountant for tracking and selection of accounts.

 

Adding a guide here in case you need help on recording tax payments.

 

Add a comment if you have further questions related to VAT. We're always here to help you. 

 

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