How do I deal with VAT on imports?

Summary

If you import goods from outside of the European Union you may be able to claim back the using the reverse charge procedure. This article will explain how to deal with this in Platinum. You need to make sure that is is relevant to your business and check with your accountant, you will also only be able to do this if you have been sent a C79 VAT Certificate. See here for how to create a new account.

More Information

Before you start dealing with this you will need to set up an accruals nominal code for the postings and also link this to a purchase center, the accruals centre will need to be an Asset/Liability centre on your balance sheet. For more information on setting up the nominal code see here. For how to create a new purchase centre see here. You should also create an account on the purchase ledger for HMRC to deal with the C79 certificate. See [[

Posting the invoice for Import duty

You will receive an invoice form your shipping company for the import VAT this should be posted as a normal supplier invoice with the value coded to your new purchase centre see here for how to post a purchase invoice.

The Invoice can be paid of in the usual manner.

Posting your C79 VAT certificate

The C79 VAT certificate should be posted as a VAT only credit