Good morning all. Can someone point me in the right direction please.
I occasionally purchase from Holland, but since 2021, using the information I’ve found so far, I think I’ve hit a problem with the vat.
I raise a purchase order entry on QFand tick the “vat reverse charge box”.
I pay the import vat and duties invoice from UPS.
I raise a purchase order entry to UPS listing the import vat as “Import charges” and the duties and handling as “Carriage”.
When I look at my vat return, it looks like I’m claiming the vat back twice! once from the supplier reverse charge and once from the UPS invoice. Is this correct?
The (mis-named) “apply reverse charge” box at the top of the purchase entry form is only for purchases of goods from EU suppliers up to 31st December 2020. From 1st January you should not tick this box and once you’ve submitted your last VAT return that includes acquisitions up to the end of December then you should remove the “VAT registered in an EC member state” option on the supplier’s settings, which will remove the checkbox altogether.
You should just enter the supplier’s invoice as “no VAT”, don’t add the UK VAT and don’t “apply reverse charge”. From what you’ve said it sounds like you’re paying the VAT up front to UPS at import so you would enter their invoice appropriately to claim back the VAT as normal. But “appropriately” is not entirely straightforward, you need to make sure the VAT is recorded as VAT, separate from the duty:
import duty: the duty amount, “no VAT”
a line for the net amount on which the import VAT was calculated, at 20% VAT
a line for minus the same net amount, at “no VAT”
e.g. if the import VAT is £100 then you’d have to say £500 plus 20% VAT on one line and -£500 with no VAT on the next, which between them add up to £0 net and £100 VAT
(Note I’m not an accountant so it may be worth double checking you’re doing things right, particularly if you later decide to start using postponed VAT accounting instead of paying up front to UPS)
Hello.I am not accountant but because also i do imports from EU and exports , i think from 2021 we need to pay VAT on invoice.
So, how is possible to not register with vat the invoice of import ? Also as i see already quickfile integrated the “postponed vat” option so you should use it to avoid pay vat (works like reverse charge) .However as i read, this option needs first on declaring the import to customs, to check the box of the form at “import vat on same vat account period” and then on quickfile, register the same invoice with vat and just click “postponed vat”.I mean imports are not "out of scope of vat ".
(However for services and digital goods that i sell, still i didnt find any solution to avoid pay vat on invoice since the service is not going through customs)
Ok as i see also “services” are under the “reverse charge” system .So for import invoices of goods we just need to register the invoice with VAT in quickfile, and then to click "postponed vat " option and for invoices of services we register invoice with vat in quickfile and then we click “reverse charge” box
