vat accounting

[surge700]

Hi,
Can someone help me with accounts for importing?

I've had a freight forwarder sort out import vat for me and invoice for it.

So i've accounted for an invoice for the full amount, outside of scope vat rate. But a portion of the full amount is vat which is reclaimable. Because i have accounted for the whole invoice the vat wont show up..

Shall I take out the vat amount to account separately and then account for the invoice without vat (the invoice without vat wont match up)?

Or is there a way to dissect an invoice to say 'some of that was vat'.

I am using tas books basic.

Thanks!

[David Richards]

I've had a freight forwarder sort out import vat for me and invoice for it.

So i've accounted for an invoice for the full amount, outside of scope vat rate. But a portion of the full amount is vat which is reclaimable. Because i have accounted for the whole invoice the vat wont show up..

Shall I take out the vat amount to account separately and then account for the invoice without vat (the invoice without vat wont match up)?

Or is there a way to dissect an invoice to say 'some of that was vat'.

I am using tas books basic.
I assume that you have two invoices; one for the goods that you've received direct from the supplier and one from the freight forwarder for the VAT? If that's the case (and assuming that whatever you've bought is standard rated in the UK), you'd normally enter:

The supplier's invoice as standard rated, but only entering a net amount - zeroing out the VAT amount that the program automatically calculates
The freight fowarder's invoice also as standard rated, but only entering a VAT amount
However Basics doesn't have the ability to post a VAT-only transaction. If there are other charges on the freight forwarder's invoice then you can just overtype the VAT element - but you can't enter VAT on its own.

(To be honest Basics probably isn't really suitable for your needs - it's not designed for for EC acquisitions or imports. It's just a simple bookkeeping program designed for 'home' transactions only.)

[surge700]

Hi,

thanks for your help..

The goods are coming from out of the eu - can i just attribute them at standard rate ?

[surge700]

Also, could i just:

Account the forwarders invoice as the amount without the vat included, then rig the vat rate to show the right amount of vat owed?

[surge700]

Sorry, another option would be to:

Just enter the invoices as exempt (recording the vat paid somewhere(c79 will be proof)), and then when it comes to vat return time, just add in the amount owed to the vat 100 form?

This is looking like the best option - what do you think?

[David Richards]

When you get the invoice from the freight fowardering company, is it just for the VAT charged on the import - or any there any other costs (e.g. fees, duty, etc)?

[surge700]

Hi,

Invoice is for the whole lot, VAT is listed as one of the components for the whole invoice.. Shipping, VAT, duty, etc etc

Thanks!

[David Richards]

Hi,

Then you would enter the transactions as I described originally; except the invoice from your freight forwarder isn't a VAT-only one - so you just enter it as normal (accounting for the fee and duty, etc) but overtype the VAT amount calculated by the software with the total amount of VAT that you've been invoiced for.

[surge700]

Thanks -

So i would put in a net amount which is the total invoice minus the vat amount,

Then over write the vat amount to be the right amount as shown on invoice?, making the total match the invoice total...