Importers
One of the issues affecting businesses is how invoices relating to imports of goods are entered on accounting systems for inclusion in the VAT return.
Prior to the UK leaving the EU, goods arriving in the country from the EU were acquisitions. Since 1 January 2021, goods arriving in Great Britain are imports. Importation of goods brings additional administration, import VAT and customs duty.
Prior to the UK leaving the EU, goods arriving in the country from the EU were acquisitions. Since 1 January 2021, goods arriving in Great Britain are imports. Importation of goods brings additional administration, import VAT and customs duty.
To enter the importation of goods onto accounting systems, it is best to think of this in three different stages 1) Invoice from overseas supplier 2) Invoice from freight forwarder and 3) Payment and/or reclaim of import VAT.
How to input onto the accounting system will depend on how the import VAT is being paid to HMRC.
How the transactions are entered onto the accounting system depends on whether the import VAT is being reclaimed via the C79 certificate or via Postponed VAT Accounting (PVA).
After BREXIT, procedure of imports and how you claim import VAT has changed. With the introduction of Postposed VAT Accounting (PVA), the cash flow of the business can be improved.
At Garrison Accountants we are experienced in dealing import affairs and how VAT is accounting for with HMRC.
Please feel free to get in touch for an initial free consultation info@garrisonaccountants.co.uk questions.
Please feel free to get in touch for an initial free consultation info@garrisonaccountants.co.uk questions.
