Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


import tax from malaysia

lorrainelorraine Trusted RegularRegistered Posts: 400
Hi All,

If my client imports cooking oil from malaysia can this be put through the accounts to reduce his profit i.e. as a business expense, he is self employed and filters oil for pubs and restaurants in the uk.

Also if he has paid VAT on the oil can this be claimed back via his vat return???

All help appreciated!

Comments

  • sdvsdv Experienced Mentor Registered Posts: 585
    Is the cooking oil for his personal use or business use?
  • lorrainelorraine Trusted Regular Registered Posts: 400
    it is for business use.
  • sdvsdv Experienced Mentor Registered Posts: 585
    Then you can legitimately put it through as a business expense. Pay the import duties/VAT and reclaim the input VAT as usual.
  • PGMPGM Font Of All Knowledge Registered Posts: 1,954
    Is the VAT UK or Malaysian?
  • lorrainelorraine Trusted Regular Registered Posts: 400
    hte plot thickens.....the oil suppliers are fraudsters, therefore client has paid but no oil has been received, does anyone know how I should account for this now???. Also I don't think he can claim the vat now, as obviously it was a fraudulent vat no also, so no vat can be claimed now is this also correct
  • sdvsdv Experienced Mentor Registered Posts: 585
    Just put it as an Fradulent purchase of Oil expense ( or a miscellaneous a/c) through the books. This will prompt the accountant to ask questions..................
  • lorrainelorraine Trusted Regular Registered Posts: 400
    thank you for your reply, but I do the tax return (se) on behalf of the client so will need to know what to do with putting it in the accounts, is it an alllowable business expense that can be used to reduce his tax reliability???
  • sdvsdv Experienced Mentor Registered Posts: 585
    if you were doing a tax return for a market trader, or
    a corner shop or
    a mini supermarket

    AND some it's stock got stolen
    or an employee stole some cash from the till
    or when goods received from supplier were short............................

    How would you treat these in accounts (tax returns) ?

    You must have come across these types of situtons before!
  • lorrainelorraine Trusted Regular Registered Posts: 400
    ok, I would put it as a miscellaneous expense account, and mark it as fraudulent oil purchase where client has paid the fiunds but not received the goods.

    Thank you for your reply.
Sign In or Register to comment.