VAT Reclaim certificate frm HMRC

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Hi i need some help please!
my client has imported goods and has received a certificate to reclaim the vat, i use the Sage Line50 and im not sure what the posting need to be?

thanks in advance

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT Reclaim certificate frm HMRC

    I've just received the same and was a bit puzzled at first as what to do.

    How have you posted the original invoice? Mine shows the VAT "as prepaid on your behalf" so I've put it through as normal on T1. This way Sage will pick it up when I do the VAT return. Presume I only have to keep the certificate as it says to claim Input tax.

    I'm dealing with Guernsey so don't know if that makes different to your case.



  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT Reclaim certificate frm HMRC

    hi
    the goods came from china, the import duty and customs taxes were paid by the transportation company in the uk, who then issued an invoices to my client with these items plus extras. The invoice was for net amount, so this was entered in sage as T2 (zero rated). I posted the vat certificate in the p/ledger as invoice for only vat amount.

    Now i have a creditor in my p/ledger, which is not right, but how else can i claim the vat in sage?

    Or should have i entered it as a journal adjustment in vat liability account and into the purchases account as credit?
    :?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:VAT Reclaim certificate frm HMRC

    I think the journal would be correct treatment, dr Purchases VAT acc on T1 and Cr purchases on T2 (your zero rated).
    That way you will be effectively reducing your purchases acc by the VAT element and both will be picked up by Sage.

    Unless anyone has any other thoughts?

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