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buzz6
May 10, 2021
Question

PVAT and HMRC statement

  • May 10, 2021
  • 1 reply
  • 0 views

We purchased some goods from China for $4655,21 US dollars and paid in GBP, the exchange rate was 1.344 so paid £3463.70. For the PVAT system we used the RC MCCP code and it showed the VAT at £692.74 (as the PVA code isn't working yet) However when we got the statement in from HMRC amount of VAT shown was £705.99. Is this due to the difference in the exchange rate of when we paid for the goods being different when the goods came into the country. If so do we need to alter anything? 

This is all new so just a little confused

1 reply

Angelyn_T
Angelyn_T
May 11, 2021

Hi, @buzz6.

 

Thank you for sharing your concern here on the Community forum. I can help you with handling your purchases in multi-currency amounts.

 

The differences in the amounts may happen due to the exchange rate updates or changes between USD and GBP. To fix the issue, you can modify the transactions or purchases recorded by updating the exchange rate. However, I would recommend consulting with your accountant for other options to handle this situation.

 

On the other hand, you can check out this link for more hints about handling transactions in foreign currencies: How you convert foreign currency transactions into sterling.

 

If you have any other questions about your USD purchases, please notify me by adding a comment below. I'm more than happy to help. Keep safe!

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