Dealing with VAT on an import outside EU

Sevenspeed

Any idea how to deal with vat on an import from outside eu in your accounts package if you are vat registered?
My shipping agent work out the vat & duty which I pay to them.
Do I treat this like an invoice from them or the revenue, or how is it dealt with?
What accounts would be debited and credited?

Regards,

Stephen

djk1000

Sevenspeed wrote: »

Any idea how to deal with vat on an import from outside eu in your accounts package if you are vat registered?
My shipping agent work out the vat & duty which I pay to them.
Do I treat this like an invoice from them or the revenue, or how is it dealt with?
What accounts would be debited and credited?

Regards,

Stephen

Is your shipping agent based in Ireland and charging you Irish VAT?

Sevenspeed

Hi,

yes they are based in Ireland and it is Irish vat...

djk1000

Then you're just buying goods in Ireland, talking about the importation is over complicating it. Treat the purchase invoices like any other.

Sevenspeed

I know how to deal with the purchase invoice from my supplier in china. It's the c88 document that my agent in Ireland completes to calculate the vat. How do I enter this on my system. I pay the vat and duty to my agent who in turn pays it to the revenue. Do I even treat it as an invoice and if so, is it from the revenue or my agent?

Odats

Sevenspeed wrote: »

I know how to deal with the purchase invoice from my supplier in china. It's the c88 document that my agent in Ireland completes to calculate the vat. How do I enter this on my system. I pay the vat and duty to my agent who in turn pays it to the revenue. Do I even treat it as an invoice and if so, is it from the revenue or my agent?

Put the VAT element into the VAT on purchases nominal account in your accounts package or VAT control account if you have both all in one. I assume that you have already correctly posted the invoice to the supplier account which would be net. The duty costs I would set up a nominal account for this and post all the duty elements to this or include it under the banner of shipping and handling costs.
Hope if this helps.

Sevenspeed

Thanks guys but I'm still in real trouble here.
The problem is that if I post an invoice from my supplier in China for the value of the goods + the vat element (as calculated on the c88 form by my irish agent), In reality, I pay the china supplier for the value of the goods and the Irish agent, the VAT & Duty, which they calculate.
The problem with this is that, on my books, it will look as if the China supplier is being underpaid (by the calculated vat amount), and my Irish agent is overpaid (by the calculated vat amount).

Ideally I would like to just post an invoice from my China supplier for the amount I paid them and a seperate invoice from the Irish agent for the vat & duty. But Tas will not let me do this, as it requires the figure I put in for vat to be 21% of something.

So far I have just been able to post an invoice from my China supplier for what I paid them. when it asked me for the VAT rate I put in 0% - Outside scope.

Surely someone out there has come across this before?

NCG

You can then post a VAT only invoice. Select M(multiple) from VAT rates, leave net as zero, and input VAT value. TAS will then ask is this a VAT only transaction - it is.

Sevenspeed wrote: »

Thanks guys but I'm still in real trouble here.
The problem is that if I post an invoice from my supplier in China for the value of the goods + the vat element (as calculated on the c88 form by my irish agent), In reality, I pay the china supplier for the value of the goods and the Irish agent, the VAT & Duty, which they calculate.
The problem with this is that, on my books, it will look as if the China supplier is being underpaid (by the calculated vat amount), and my Irish agent is overpaid (by the calculated vat amount).

Ideally I would like to just post an invoice from my China supplier for the amount I paid them and a seperate invoice from the Irish agent for the vat & duty. But Tas will not let me do this, as it requires the figure I put in for vat to be 21% of something.

So far I have just been able to post an invoice from my China supplier for what I paid them. when it asked me for the VAT rate I put in 0% - Outside scope.

Surely someone out there has come across this before?

Sevenspeed

Thanks NCG, that worked!