FedEx VAT on Imports

[nadine]

Hello,

Previously, I entered purchases somewhat lazily without specifying the VAT (i.e., I simply entered the full amount). Now that we are registered for VAT, I’ve had to revisit these purchases and enter the pre-VAT amount. I adjusted the drop-down to 20%, which automatically calculates the final amount (the same as the full VAT amount previously entered).

However, I’m encountering a challenge with an invoice from FedEx for duties and taxes incurred when importing supplies. For example, the invoice is for £87.01, comprising £58.83 VAT, £15.43 duty, and a £12.75 disbursement fee.

My question is, how do I enter this as a purchase? The system seems to require VAT to be 20%, 12.5%, 5%, or 0%, but this doesn’t seem to apply to VAT on imports as per this FedEx invoice.

Thank you.

[ian_roberts]

The way I used to handle vat-only invoices was to times the VAT by five to work out the theoretical net N on which that vat amount would be 20%, then make a purchase with one line for +N at 20% vat and another line for -N at 0% vat. The net elements of these two cancel out and leave just the vat.

In this case you could then add another 0% line for the duty and disbursement - as long as the totals for net and vat agree with the invoice from FedEx it doesn’t matter exactly how you split them up in QuickFile.

[nadine]

brilliant. thanks so much!