In December I paid for imports and the total (no VAT applicable) was included in the VAT return to December 3. The cargo is arriving now and in addition to import duty there is VAT payable (which I'll reclaim 31/3) Should I deal with this by issuing a credit note for the December entry and issue a new Invoice including VAT now for the 31/3 return?
A problem is that the exchange rate I used to pay for the goods is not the same as the one HMRC uses now to calculate duty and VAT. Is there a way simply to raise a debit note or invoice for the VAT as I will for the duty?
Appreciate your guidance.
Hi Michael,
The simplest solution is to create another invoice that only includes the VAT amount and the import duty. See this page for details of how to do this:
http://www.solaraccounts.co.uk/forum/topic.php?TopicId=1116&Posts=2
(In your case the invoice will only have 3 lines since you don't have an admin fee)
Regards
