How you do this depends on your VAT scheme. please choose which VAT scheme you are using: Standard VAT >
When using postponed accounting, imports of goods where import VAT is charged affects boxes 1, 4 and 7 of your VAT Return. As the import VAT and duty may not always be charged at exactly the same time as the goods you're importing, you may need to record the different elements separately. Net + VAT - Goods and import VAT - The imported goods plus import VAT affects boxes 1, 4 and 7 of your VAT Return.
- To do this you must create a customer account to contra the purchase invoice against.
- To record this, post separate purchase invoices for the NET and VAT amounts to the supplier, and a sales invoice to the customer contra account created, as follows:
| Type | Net | T/C | VAT | | Purchase invoice | Goods amount | T0 | Zero | | Purchase invoice | Zero | T1 - Standard rate | Import VAT amount | | Sales invoice (Contra account) | Zero | T1 - Standard rate | Import VAT amount | - Once posted you must then contra the VAT transactions against a contra bank account:
 NOTE: If you regularly post this type of transaction, you may prefer to create a dedicated contra bank account to post the payment and receipt transactions to.
| Type | Bank account | Payment | Purchase payment,
allocated to the VAT only purchase invoice | Contra | Import VAT amount | Sales receipt,
allocated to sales invoice | Contra | Import VAT amount | NOTE: Alternatively you can post and allocate NET only T9 Credit Notes to a Contra Nominal Code. - If you receive a separate invoice for import duty plus VAT, record this in the same way.
Net only invoice - Goods only - The net value of the imported goods should appear in boxes 7 of your VAT Return.
- To record this, post a purchase invoice as follows:
| Type | Net | T/C | VAT | | Purchase invoice | Goods amount | T0 | Zero | VAT only invoice - Import VAT only - The import VAT should appear in boxes 1 and 4 of your VAT Return.
- To do this you must create a customer account to contra the purchase invoice against.
- To record this, post a purchase invoice to the supplier, and a sales invoice to the customer contra account created, as follows:
| Type | Net | T/C | VAT | | Purchase invoice | Zero | T1 - Standard rate | Import VAT amount | | Sales invoice (Contra account) | Zero | T1 - Standard rate | Import VAT amount | - Once posted you must then contra these transactions against a bank account:
NOTE: If you regularly post this type of transaction, you may prefer to create a dedicated contra bank account to post the payment and receipt transactions to. | Type | Bank account | Payment | Purchase payment,
allocated to purchase invoice | Contra | Import VAT amount | Sales receipt,
allocated to sales invoice | Contra | Import VAT amount | NOTE: Alternatively you can post and allocate NET only T9 Credit Notes to a Contra Nominal Code. The balances within the Sales & Purchase Tax Control Accounts are resolved after the VAT journal has been posted following the Reconciliation of the VAT Return. VAT Cash Accounting >
When using postponed accounting, imports of goods where import VAT is charged affects boxes 1, 4 and 7 of your VAT Return. As the import VAT and duty may not always be charged at exactly the same time as the goods you're importing, you may need to record the different elements separately.
For net values you need to create a new Tax code with the following attributes: 
Net + VAT - Goods and import VAT Net only invoice - Goods only - The net value of the imported goods should appear in box 7 of your VAT Return.
- Then post a purchase invoice as follows:
| Type | Net | T/C | VAT | | Purchase invoice | Goods amount | T98 | Zero | VAT only invoice - Import VAT only [BCB:97:Limitless - 50 Accounts - VAT:ECB] Did this help? We're always looking to improve our content based on your feedback so if you found this guide helpful, you can easily let me know by using the options below. [BCB:44:Accounts VAT disclaimer:ECB] |
