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gregw79
January 6, 2022
Question

VAT on import

  • January 6, 2022
  • 1 reply
  • 0 views

looking for some help on how to record the VAT on an import bill (from China) we have.  Our supplier send the shipment by fedex.  A month or so after receiving we get the Fedex bill totaling £330.29.  £314.99 is the VAT on the import, £12.75 is the charges which is vatable.  

 

 We need to reclaim the £314.99 VAT we paid however i dont see it appearing when i create the VAT return.  Initially i put the VAT element under VAT suspense when creating the expense (with vat exempt or 0% VAT on it).  I'm guessing this isn't correct as it isnt showing up on the vat return.  

 

Any help on how to get the £314.99 to appear on the VAT return would be much appreciated.

 

Thanks

1 reply

paul72
paul72
January 7, 2022

Hi @gregw79 

 

There are quite a few posts on here about import VAT - there are a couple of different ways to achieve the same thing but you need to create an invoice (or series of lines) that give 100% VAT (search for 100% VAT or import VAT for the various methods & choose your favourite).

 

My usual method for ending up with £20.00 VAT charge...

    You effectively have to enter a two-line transaction.

    (1) ... Value of £100.00 with S20% VAT = £120.00

    (2) ... Negative value of £100.00 with 0% VAT = £100.00

    This will leave you owing the £20.00 of VAT & show correctly on your VAT return.

 

Hope this helps.

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