Overseas purchases - 1 invoice without sales tax, 1 invoice 100% VAT from shipper

[Ute]

Dear Quickfile community,

sorry if this has already been covered, as this is now the norm with supplies from overseas.

How would this be entered correctly when making an oversea purchase, say from the EU or US.

• The suppliers invoice will be paid without containing any VAT while
• The shipper would then invoice for 100% of the VAT and any duties

This then comes into Quickfile as two seperate entries via the bank feed. One entry is almost purely VAT.

How does one “stich” these together correctly?

Hope this makes sense? Apologies for my non technical understanding.

Thank you in advance for any help,
Ute

[ian_roberts]

The simplest way to record a VAT-only invoice is to create one with two lines - work out the net £X on which the VAT you’ve been charged would be 20% (i.e. the VAT total multiplied by 5), then make

• one line for +£X at 20% VAT
• one line for -£X at 0% VAT

That should leave the invoice total as zero net and the correct VAT amount.

[Ute]

thank you for your helpful suggestion.

Just to add to your suggestion, HMRC gave this answer:

"I would recommend doing whatever works best for your software.

As it is an import with VAT being charged and passed over to your courier then there is an entitlement to recover it and so would appear in box 4 and box 7 of the VAT return ."

[QFSteve]

The below article details the vat options and the codes they affect

https://support.quickfile.co.uk/t/vat-options-explained/40202