Hello All
I recently bought an engraving machine for use in my small scale product production. It came from china (sadly) and I’m not sure how to account for this within Quickfile.
I paid for the machine in USD, which was converted to GBP.
On arrival, it attracted VAT @ 20% and was 0% duty rated.
The import agents I used invoice separately for service charges, so that’s straightforward.
My problem arises from the fact that I have an invoice from the manufacturer, and a separate invoice for the VAT value from the UK importer. The VAT charged is about 3% greater than 20% of the actual cost. The importer puts this down to exchange rates used by HMRC but the rates were the same as the date of purchase.
My question is, how do I enter these invoices into Quickfile and do I need to adjust for the incorrect VAT charged?
Any guidance gratefully received.
No one had to do this before?
Firstly. Are you vat registered? It may sound a silly question but it isn’t clear from your initial post.
Hello Paul. Yes I am.
You should be able to edit the purchase receipt and adjust the vat element.
The purchase invoice is from a chinese supplier. There’s no VAT element.
The VAT was charged to me by the customs clearance agent so I have their invoice which is entirely VAT.
I’m unsure how to enter/link these 2 invoices in Quickfile and also how to ‘correct’ for the VAT calculation at an apparently less favourable exchange rate.
You can manually adjust the VAT on the invoice to over-write the calculated amount. As for entering a VAT only invoice, the work around courtesy of @ian_roberts here VAT only Invoices - Nil Sales seems to be to enter two lines on the purchase invoice, one for the net amount at 20% to give the correct VAT. The second line would be minus the net amount but at zero VAT. The balance on the invoice would then just be the VAT.
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