Import VAT & PVA Duplication

[tc5440]

HI, this is an accounting question for advice from anyone. We use Postponed VAT Accounting for imports (PVA). On a recent import UPS charged VAT using their disbursement account and also processed the import under PVA so the VAT due appeared on the next PVA Statement on our HMRC account. UPS will fix the error but it may take 6-8 weeks. In the meantime I need to file a VAT return. The question is… Do I:
A) Enter the vat paid on the UPS purchase invoice and ignore the PVA statement? or
B) Enter the vat paid on the UPS purchase invoice and enter the PVA statement amount on the Product Purchase Invoice there fore paying twice until the issue is resolved then reversing one or UPS Issue a credit and refund?
The vat is nearly £1,000
Any thoughts?

[QFSteve]

Hello @tc5440

I found the following links which may help links may help

https://support.quickfile.co.uk/t/postponed-vat-with-currency-gains-loss/47850

VAT Options Explained

When creating a sales or purchase invoice in QuickFile you will see a number of additional VAT options in the invoice editor. These options can be used to control the boxes within which the NET and VAT totals are reported in your VAT return. In this guide we explain when to use each of the VAT options and the effect that each will have on the VAT return. VAT on sales The examples provided are below for standard VAT accounting and are based on a £1000 sales invoice plus VAT (where applicable). …

There are also a number of forum posts relating to this topic

Postponed VAT Accounting & Exchange Rates - Purchase Invoice Value

Good Morning, So I have a question surrounding purchase invoices and postponed VAT accounting and Exchange Rates. So I have an EU purchase invoice from a supplier. We ordered /purchased the goods in January 2021, we paid the supplier for them in March and the customs declaration was made by a customs agent also in March 2021. The supplier invoice was in Euro’s. We paid for the goods using an currency exchange company, so we got a spot rate on the day and they paid the supplier within 2 hour…

VAT on Imported goods

If you import goods from outside the UK (EU/non-EU makes no difference unless you’re in Northern Ireland) then you may be able to use the “postponed accounting” mechanism that has been introduced for all imports and which works in a similar way to the old EU acquisitions mechanism. But it depends on many factors, such as how you’re doing your customs declarations, if you’re using a parcel operator who pays the VAT and import duty on your behalf, etc etc. you should probably speak to your account…

Postponed VAT accounting for a non-purchase

We are VAT registered. After the abolishment of low value consignment relief, we are starting to get HMRC postponed VAT entries on negligible value goods being couriered to us. The goods are worth nearly nothing in market value but the courier evaluates customs value including an estimate of transport charge (CIF = cost, insurance, freight). We are not purchasing these goods. A close analogy might be one company couriering another company in another country a cheap pen as a business gift. Let’s …

PVA with split invoicing - Are we doing it correctly

For some of our larger purchases from our US supplier we pay stage invoices so there may be 2 or 3 over the course of the project. All line items are shown with 0% vat. Each invoice is flagged with “Outside the Scope of VAT” except for the last one which is flagged “Postponed accounting rules for imported goods” and a line is entered for the vat only which brings up a post goods value on the vat return. It is only when the equipment arrives in one shipment that the vat due is calculated at impo…

Fedex invoice

Apologies if this is answered elsewhere but I haven’t found it. I did find this (C79: Import VAT / Import Duty / Handling Fees - #2 by Joe) but it’s not the same as it applies to import duty, not import VAT. Anyway, I paid a Canadian company to make some metalwork. It qualified for ‘free’ shipping to the UK - that invoice is paid £261.04. I now have an invoice from Fedex for: [image] I have paid Fedex the £54.95 So how do I tag the separate invoices from the Supplier and Fedex? The ‘origin…

[tc5440]

Thanks @QFSteve. I had looked through these but the issue is a different one.

iwt technologies ltd
Wakefield, UK
+44 113 328 0330
accounts@iwttech.co.uk
www.iwttech.co.uk

Sole UK & Eire Reps for
www.VentilAQUA.com
www.Pulsair.com

FRIESS Fluid Cleaning Systems | Made in Germany

| QFSteve Support Team
21 April |

• | - |

Hello @tc5440

I found the following links which may help links may help

https://support.quickfile.co.uk/t/postponed-vat-with-currency-gains-loss/47850

VAT Options Explained VAT

When creating a sales or purchase invoice in QuickFile you will see a number of additional VAT options in the invoice editor. These options can be used to control the boxes within which the NET and VAT totals are reported in your VAT return. In this guide we explain when to use each of the VAT options and the effect that each will have on the VAT return. VAT on sales The examples provided are below for standard VAT accounting and are based on a £1000 sales invoice plus VAT (where applicable). …

There are also a number of forum posts relating to this topic

[cbstephensaca]

The VAT on the PVA statements is effectively a reverse charge - you declare it and reclaim it on the same return so the net effect on your cash flow is nil. Put this on your VAT return as usual.

The issue seems to be the incorrect charge from UPS. Have you paid their bill including the VAT? If you have been charged VAT, and have a VAT invoice to support it, then you can reclaim the VAT. You will then have to pay it back next time when UPS issue the credit note. However, if you haven’t put the bill through your accounts, because it’s in dispute, then there is no need to include it in your VAT return. You don’t have to account for- or pay! - an invoice you reasonably believe to be incorrect and where you’ve raised a query with the supplier. You can wait for them to sort it out and account for it all then.

[tc5440]

@cbstephensaca Of course. Thanks, that makes total sense.