For some of our larger purchases from our US supplier we pay stage invoices so there may be 2 or 3 over the course of the project. All line items are shown with 0% vat. Each invoice is flagged with “Outside the Scope of VAT” except for the last one which is flagged “Postponed accounting rules for imported goods” and a line is entered for the vat only which brings up a post goods value on the vat return.
It is only when the equipment arrives in one shipment that the vat due is calculated at import and applied to our PVA account.
For single invoice shipments we enter the PVA as a line entry for vat only on the purchase invoice but for split invoicing is it OK to show the PVA only on the final invoice?
It is possible that the split invoices could sit across more than one vat period.
It is only when the goods are imported that the vat is calculated accurately which is close in time to the final invoice. The final invoice value will bear no relation to the amount of vat.
Hi @tc5440
It may be best to speak to your accountant, who will have better knowledge of the way that your business is run and will be able to give you advice.
Unfortunately, the QuickFile team are not accountants, and while some of the forum members are, they may not have enough knowledge of your business to give specific advice.
I’m sorry I couldn’t be of more help on this occasion, but if you have any further questions, please don’t hesitate to reach out.
PVA can be 0% or 20% rate for vat depending on items imported, it is reverse charge by default, you dont need out of scope vat option. Depending on vat scheme vat point can vary, for standard accrual vat scheme, you can record invoice when you actually get good and record installment payments as payment on account to supplier
Faraday, that’s great, thanks
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