We are facing a similar issue as discussed in above thread. The imports are in a different currency & HMRC Postponed Import VAT Statement has VAT amounts in GBP. These will never adhere to 20% of import value of supplier invoiced logged in foreign currency. The postpone VAT function in supplier invoice screen only works if supplier invoice is in GBP. We are struggling to account for postponed VAT. We thought of way to create invoices under a new supplier “HMRC Postponed Accounting” & have exact VAT amounts in gbp on vat columns. However then issue is that purchase invoice cannot be created at zero value so unfortunately that doesnt work. So we cant account for postponed import vat under original supplier invoice being in different currency & not matching HMRC statement.
I will appreciate if QF or someone can suggest how to deal with this.
Please accept my apologies for the delayed response. We wanted to get clarification on this before responding.
First and foremost, it should be noted that I’m not an accountant. It’s usually best to speak with your accountant to ensure this is done correctly, but this guide which we have prepared may help"
Hi Steve,
Thanks for your reply.
The issue with your / QF suggested both options is that both involves adjustment in the VAT return. We want to avoid manual adjustments to minimise chances of error & beats the point of automation. For a quite a few years we used to manually adjust the VAT returns arising out reverse charge, as we deal in products that attract reverse charge where buyer accounts for VAT. Thankfully with QF adding reverse charge functionality to the invoices, just with one tick we have managed to get vat returns correct. So going back to manual adjustments for something we do regularly (import in foreign currency) will be taking a step backwards. It will also be prone to errors. We will have to pick all supplier invoices + HMRC statements at the time of VAt return & then working out adjustment amount is prone to errors, say if you work out incorrect amounts or miss one statement etc,
One idea that we are playing with is to create a fictitious supplier called - “HMRC Postponed Import VAT” & attribute all VAT amounts in GBP to this supplier on VAT columns, this obviously matches with the HMRC statement as we raise this invoice from the statements. Then to tick Postpone VAT Box to get the VAT amounts filled in correctly in the VAT return. The only downside is that we are not able to create purchase invoices with zero value. So we are having to put 0.01 on Gross column & then later on crediting it to close the invoice. This way all our HMRC statements match with their corresponding QF purchase invoices.
The actual vendor invoices are created in original foreign currency with zero VAT no boxes ticked.
May be QF can remove the restriction of raising zero value purchase invoices.
Thanks very much, if this can be done then it will resolve everything & I believe tie up all loose ends, without worrying about how HMRC have worked out exchange rates & vat amount.
I know it’s no help really, but other software has a function within the VAT return itself which enables you to upload the PVA statements from your HMRC account and enter the PVA adjustment into the VAT return without affecting your accounting records at all. The supplier invoice is simply entered as normal with zero VAT (as it’s an import). Given you are not paying the VAT, there is no need to enter it into the books when you record the supplier invoice. Especially as often the invoice is received well in advance of the goods entering the UK (which is the point at which you need to think about reporting the VAT). QF seems to be over-complicating things.
