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Dogboy
August 30, 2022
Solved

100% VAT Charge from Parcel Force

  • August 30, 2022
  • 1 reply
  • 0 views

Hello,

I know this has been asked before but I am still have issues with this.

I purchased an item from Germany and the VAT was zero (As it now should be). Parcel Force correctly issued me with a VAT charge invoice. The invoice is 100% VAT. I paid this invoice using a debit card and this transaction shows up in the bank register but I have not yet not yet linked to an invoice.

 

How do I account for this in QuickBooks?

I have read a few ways to do this but it seems wrong and does not actually work when I try. Why is their not a proper way built into QuickBooks to allow for this type of transaction?

 

What is the best way to do this so that I can account for the bank transaction and also account for this correctly on my VAT return?

 

Thank you

 

Paul 

Best answer by GeorgiaC

Hi Paul, thanks for your post - the steps to record the 100% VAT invoice in QuickBooks are listed below, this will create an expense for the total amount of VAT charged that will post to box 4 of the VAT return and will create an entry to match to the transaction in your bank if you have this connected. 

 

1) Select New + > Expense (check that you enter the bank account that the amount was debited from in the Payment account field and the date the amount was debited in the Payment date field)

2) On line one in the category column select the purchases account > in the Amounts are field enter Exclusive of Tax > in the amount field enter 0.01 > in the VAT column enter 20%S (20%) 

3) On line two enter the same purchases account as line one in the category column > in the amount column enter -0.01 > in the VAT column enter Exempt 

4) Enter the amount of VAT you would to reclaim in the VAT field between the Subtotal and Total.

1 reply

G
GeorgiaCAnswer
August 30, 2022

Hi Paul, thanks for your post - the steps to record the 100% VAT invoice in QuickBooks are listed below, this will create an expense for the total amount of VAT charged that will post to box 4 of the VAT return and will create an entry to match to the transaction in your bank if you have this connected. 

 

1) Select New + > Expense (check that you enter the bank account that the amount was debited from in the Payment account field and the date the amount was debited in the Payment date field)

2) On line one in the category column select the purchases account > in the Amounts are field enter Exclusive of Tax > in the amount field enter 0.01 > in the VAT column enter 20%S (20%) 

3) On line two enter the same purchases account as line one in the category column > in the amount column enter -0.01 > in the VAT column enter Exempt 

4) Enter the amount of VAT you would to reclaim in the VAT field between the Subtotal and Total.

D
DogboyAuthor
August 30, 2022

Hello,

 

Thank you for your quick reply.

I done what you said and it worked perfectly. Spot on thank you.

I also checked my VAT report and that was also correct with this transaction.

 

Thanks again for a swift easy solution.

 

Regards

Paul 

G
GeorgiaC
August 30, 2022

Glad to hear it! 🙂

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