I import goods from outside the EU which gets delivered to the seaport. The shipping company clears the customs on my behalf and creates a C88 document which has both VAT and Customs Duty, and the C88 form is sent to me to make a payment to HMRC FAS with a reference number directly. Upon payment, the goods are released and I get the delivery.
I am a Fixed Rate VAT registered business and cannot claim VAT on normal purchases, however, I can balance out the VAT already paid to HMRC with my sales. The VAT I pay is in thousands.
Please can someone help me how to tag this amount from my bank account as VAT already paid to HMRC? There is an option to tag VAT, however, the amount to tag also has a small portion of Customs Duty along with VAT, so I cannot tag it directly as VAT.
How do I go about making the right tagging, so I could reclaim VAT or balance out while submitting the VAT returns (I am on annual VAT filing mode, being a small business, and haven’t submitted VAT via quickfile yet, but have to do it very soon.)