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Import Tax - How to record the invoice

Forum|Forum|4 years ago
March 30, 2022
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I am completely confused about how to record import tax. I have spoke with Quickbooks but on doing what I was told, the VAT I am owed for that month is still the same!

I had goods delivered from the EU. I had to pay separately the Import Tax. As an example, I have one bill from UPS. The total amount and what is showing on my bank transactions is £181.87. Of this 170.38 is import tax. I can't add this transaction as this invoice is mainly VAT (rather than 20%). How do I record this transaction? Or how do I change the VAT percentage to reflect what I paid.

I can't seem to find any guides on this.

QuickBooks Online

Best answer by paul72

Hi @Cocoon

There are loads of discussions on here about Import VAT / Duty & how to enter in QBO.

Search for Import VAT or 100% VAT - there are two or three methods, pick your favourite.

A recent thread which should give you the basic idea ... https://quickbooks.intuit.com/learn-support/en-uk/vat/re-entering-duty-vat-deferment-processing-fee-invoice/01/1054102/highlight/false#M7119

Hope this helps.

MJoy_D

I can help you with recording your invoices, @Cocoon.

You can create a service or noninventory item affecting the sales tax account instead of income. Then, you can add it to your invoice.

Here's how:

Go to the Gear icon and select Products and services.
Click the New button and choose Non-stock or Service.
From the Tax dropdown set the sales tax.
Provide all the necessary information.
Click Save and close once you're done.

Refer to this article for more information about adding a product or service item: Add product and service items to QuickBooks Online. It will guide you further on how to run reports that can easily track what you buy or sell.

Once done, you can now add it to your invoice. Just make sure to set it as non-taxable, so it will not recalculate the tax item. See this article for detailed guidance: Create invoices in QuickBooks Online.

Here's more information on how to record the payments once you've received them: Record invoice payments in QuickBooks Online.

I'm always here if you need help recording your transactions. I'm always glad to help in any way I can. Have a great rest of the day!

C

CocoonAuthor

Thank you. I am still confused. My invoice is for Import TAX so I need to record almost all of it as VAT so I can claim it back. I only have the standard options here to set the sales tax, which do not fit this invoice. Out of £181.87, £170.38 is Import Tax (VAT) as this was charged separately from the product bought

J

jamespaul

Hello, Cocoon.

I'd like to work with you and figure out how to record the import VAT.

First, I need some details from you so I can lay down the solutions regarding the VAT import.

Just to clarify, are you trying to use a customer invoice or a vendor bill for it? Knowing this is crucial since it affects how your VAT is posted.

Also, what kind of VAT codes did you use initially when you were instructed to record it?

I'd also appreciate if you could provide more details about the £181.87 bill. This way, I can help you ensure the line items and the associated tax settings are correct.

Looking forward to your reply.