Tagging Import VAT

I’m not VAT registered, but have been importing some goods from the USA for resale. After the goods have landed I get sent a bill from a customs clearance agency, which is made up of an £8 fee plus Import VAT. The last one was £29.36 (£8 charge + £21.36 Import VAT), which I paid through Paypal.

What would I actually tag that transaction as? I’m aware that obviously I can’t reclaim the VAT with being non vat registered, but it’s still a cost that I’m paying out (sorry if it’s not clear what I mean but I’m no accountant!)

You can just include the import duty as part of the carriage costs. There is a category “Carriage” (nominal code 5100) where you can post that to. As a non-VAT registered business there’s no need to itemise the duty separately.

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Thanks, that’s great!

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