I am trying to create an invoice from my import shipping agent. The invoice from the exporter (outside EU) has no VAT, the VAT is charged by Customs separately when the goods arrive in the UK.
My shipping agent then pays the VAT and bills me an invoice for the VAT and customs duty on the import in one invoice.
The VAT on this invoice is 97.61981290071557% to be exact (as the duty fees are also included on that invoice but account for less than 3% of the total).
I am unable to input this custom VAT rate into the system. How should I tag the bank transaction correctly in order to allocate the VAT paid so I can reclaim it properly on my VAT return.
This will be a common thing for me now as I am importing regularly.
@StLTD - Are you able to send me a copy of the invoice please?
The only reason I ask is to check the best way to approach this, but just want to check the details on the invoice itself.
I’ll send you a private message now - look for a green notification in the top right hand corner
Hi,
I have had this issue before and Glenn gave me a good solution:
Create the purchase record and enter items such as customs duty and IFFEC Fee as 0% vat entries. Then create a line for the products purchased based on the customs value on your paperwork at 20% vat and ensure the vat is correct.Adjust if necessary. Then create a credit line for the same product but as a -ve value at 0% vat thereby leaving the vat amount on the purchase record without the item value which you have presumably paid the supplier for directly.
Hope this helps
Nick
at least it’s a temporary solution, although very long winded at that!