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billygreenway
December 3, 2021
Solved

Accounting for import VAT UK

  • December 3, 2021
  • 1 reply
  • 0 views

Hi there,

 

I am trying to prepare my accounts to file a VAT return.  

I am importing items from China to UK and have to pay VAT on entry to UK.

The import of items can be broken down into two transactions:

  • 1) Payment of supplier for items (No VAT is paid in this transaction)
  • 2) VAT paid at import of items to UK

 

At the moment I am categorising transaction 1 as No VAT and transaction 2 as 100% VAT.  The problem with this method is that transaction 1 then doesn't show up in Box 7 "Net value of purchases".

 

What is the correct method to account for VAT in this case?

 

 

Best answer by Ashleigh1

Hello Billygreenway, 

 

Welcome to the Community page, 

 

So for number 1 instead of putting it as NO VAT you would put it as Exempt and that would be required to show in box 7 for you. 

1 reply

A
Ashleigh1Answer
December 3, 2021

Hello Billygreenway, 

 

Welcome to the Community page, 

 

So for number 1 instead of putting it as NO VAT you would put it as Exempt and that would be required to show in box 7 for you. 

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