Postponed VAT on imports, to fill orders to overseas customers?

So we are ordering items from Italy to fulfill an order from an Australian based client. The Italians send the order to us by DHL etc… and the VAT automatically goes on to our postponed VAT account. the issue is the order isn’t sold here its sold overseas where we don’t bill them for VAT so how do i account for the Postponed VAT in Quickfile for this anomaly. AS we suddenly have VAT in our account that we can’t seem to account for etc…

Hello @damndit

I found the below threads in the forum related to your query which may help.

If the Italians are sending the goods to you in the UK and you are then sending them on to Australia, then the purchase goes through postponed accounting and the subsequent sale is an export.

Exports of goods are zero rated for VAT, not exempt or out of scope, so the import vat when the goods arrive from Italy is input tax related to a taxable supply (the sale to Australia), and you are eligible to reclaim it even though the amount of vat you’re charging on the subsequent sale is £0.

1 Like

This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.