Postponed VAT Accounting on Imports

Bear

Hello,

I have searched all over but can’t seem to find the answer. I am VAT registered and have an EORI number. I import goods from around the world. Under the new PVA scheme, it means when I import goods or pay a deposit for manufacture, the cost is outside the scope of VAT. Upon receiving the goods, I get a VAT invoice which is 100% VAT.

In Crunch there seems to be no way of recording this ? If I have a VAT bill of £1,000 I would need to show that £1,000 in boxes 1 and 4 on the VAT return to evidence that there has been a charge and reclaim of the entire value resulting in a net £0 overall charge.

How can this be handled in Crunch without falsifying my expenses ? I can’t be the only person who deals with imports and uses Postponed VAT Accounting ?

Thank you

TomFromCrunch

Hiya Bear, thanks for getting in touch. I’m afraid it’s not possible to adjust the VAT return in Crunch Free - our accountants can assist with this as part of our Pro package. I’ll be more than happy to get someone to give you a call to explain the benefits if you would like.

Thanks!

Bear

Hi Tom,

I would love a call to go through this. I am however not on the pro package. To be honest if this can’t be resolved, I don’t really have any other choice than to cancel my subscription for VAT accounting and go to QuickBooks. I can do it on there for £12.00 per month, not £75.50 + £3.50 per month. As a small business I can not commit to that level of ongoing expenditure for software that does not meet my requirements

Thanks

TomFromCrunch

Hi Bear, really appreciate the feedback, sorry to hear that. Would you mind sending us a couple of your invoices as an example to feedback@crunch.co.uk - the team would like to have a look to see if we can advise a suitable workaround for you?

Bear

Thanks Tom, Sorry for delayed response - it has been a busy time ! I will send an email over this morning

pearsonmckinsey

Well, to utilize postponed accounting, a shipper ought to enter a code on the import statement. This code will permit the VAT on import liability be represented by the merchant in their VAT Return. The VAT Return will contain new boxes (fields) to catch this information. Well, i would say small accounting firms in london give their workers better exposure and an all the more balanced accounting experience.

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