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R
RogerSterling
September 6, 2024
Question

Reclaiming a VAT payment made via a 3rd Party

  • September 6, 2024
  • 1 reply
  • 0 views

My business is VAT registered and I recently imported some goods using a freight forwarding company. They paid the import VAT bill on my behalf. How would I categorise the VAT payment I made so I can reclaim it from HMRC, with the payment being entirely VAT? (so not standard rate or zero etc).

1 reply

G
GeorgiaC
September 6, 2024

Hi RogerSterling, thanks for reaching out to the Community today

 

You can enter a VAT-only transaction in QuickBooks Online. This will create a 100% VAT transaction that will show in Box 4 on the VAT return. Here's how:

 

1. Select + New then Expense.
2. You can either choose a payee or leave the field empty.
3. On the first line of the expense, choose any of your Expense accounts.
4. In the Amount field, enter the VAT exclusive amount. For example, 100.
5. Select 20.0% S as the VAT code.
6. On the second line, reverse the amount by entering it as a negative value. For example, -100.
7. Select Exempt as the VAT code.
8. Check if the amount in the VAT amount box is the amount you need.
9. The total of the expense will be 0 and you will see the VAT to be included in the return. You can then edit the amount in the VAT box to whatever you need it to be.
10. Under Subtotal, enter the VAT amount into the VAT box and Save the expense.

 

I'm just a post away if you have further questions or require additional assistance. 

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