International Purchases and bank tagging

I have bought some stock from the US (which I plan to do a lot of in the future) and this transaction appears on my bank statement as I paid by card, the CSV has been successfully uploaded and is sat waiting for me to tag each payment.

Now, my question is do I create a new purchase in USD from the supplier and tag the statement payment to it somehow or do I just tag the entry in GBP and let it create a payment to a supplier?

I’m not VAT registered at present but I will be in the future and just want to get it right as I remember there is a part on the VAT return that asks for non EU purchases.

Any help appreciated

Cheers

If you get invoice in Dollar or credit term then Its better to create $ dollar account and pay stock purchase invoice from there, it will account for exchange in foreign currency loss or gain too automatically

Vat treatment not only apply once you are vat registered but would have implications well before registration in terms of reversal charges which can force you to register for vat well before UK threshold.

I did a quick summary on VAT treatment on Goods & Services, this should help

so are you saying I’d be better off creating a USD new purchase from the “purchases” tab and mark it as paid from there via debit card and delete the entry in the bank statement as it won’t be tagged?

thanks for your help FK

Do you get invoice in dollars or £?
Do you pay immediately for your purchase or after sometime, say 30 days etc?

If yes to above two or any, its better to open a $ dollar account in quickfile

Or alternatively you can tag £ payments from your main account if you book invoices in £ or booking expense direct from bank

It depends how you want to keep the recoding process

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I normally send over a filled in purchase order in their dollar prices (their spreadsheet), then phone to pay over the phone by debit card, then they send me the invoice in dollars if that makes sense.

But the amount shows on my bank statement is in GBP obviously with the international transaction charge aswell.

Can a USD new purchase be raised and the GBP amount in my statement be linked to it?

Sorry to sound dull, I’ve pretty much figured everything else out apart from this scenario.

Yes you can raise stock purchase invoice in $ and record payment from £ account, just go on $ invoice and log payment and pick £ account

You wont be able to tag direct to Us suppliers from £ account though, it has to be from invoice itself

AH okay, but that doesn’t seem to “tag” that payment (turn it green and say “tagged”) in the statement view. just say’s paid in full on the purchase

Do i delete this entry in the statement list as it’s already allocated elsewhere? or just leave it as Red "Tag Me!!!)

thanks for this, were getting there

If you are recording payment through invoice then delete other entry you did or brought through feed

That’s fantastic FK thanks very much for your help!!!

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