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PeterSM
December 21, 2021
Question

Purchases from EU member states

  • December 21, 2021
  • 1 reply
  • 0 views

So I made a purchase from an EC Member state for say £500. The company did not charge VAT as I gave them my VAT number. DHL then invoiced for £100 plus £11.00 handling fee. How do I record this in QB?

1 reply

katherinejoyceO
katherinejoyceO
December 22, 2021

Hi there, @PeterSM. 

 

I've got you covered in recording your purchases and the delivery with handling fees. 

 

In this case, you'll need to create a check for $500 payable to EC Member, then another check for $111 payable to DHL. 

 

Here's how: 

 

  1. Click the + New menu, select Bill.
  2. From the Supplier dropdown, select a vendor (EC Member).
  3. Enter the Bill date, Due date, and Bill no. as they're recorded on the bill.
  4. Enter the bill details in the Category details section. From the Category dropdown, select the expense account you use to track expense transactions. Then enter a description. Tip: You can also enter specific products and services in the Item details section to itemize the bill.
  5. Enter the Amount ($500) and tax if applicable, then select Save and close.

 

Repeat the process when paying DHL. 

 

For more insights, check out this article and learn more about entering and recording bill payments in QBO. 

 

For future reference, read through this article to know more about managing expenses in QuickBooks Online.

 

Keep me posted if you have any other questions. I'm always here to help. Have a great day!

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PeterSMAuthor
December 22, 2021

Thanks for the response but it doesn’t help with the issue. The £500 is not a problem none of this is tax (VAT). The £111 is £100 tax (VAT) and £11 charges. I cannot enter £100 VAT as it is not a regular VAT %. I think it needs to be entered as an adjustment but I am not sure how.

Thanks for your help.

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payment after leaving
December 22, 2021

Hi PeterSM You could create a 100% VAT transaction and add an additional line for the 11 GBP charges.

To create a 100% transaction you would:  Select New+ > Expense > ensure 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 > 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%) > 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 > enter the amount of VAT (100) you would to reclaim in the VAT field between the Subtotal and Total.

You would then add an additional line for the charges/an expense account add the 11 GBP into the amount column and enter No VAT in the VAT code column.

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