I have received an Invoice from my Freight Forwarders for duty & vat on goods I have imported and already paid for (Outside the EU).
The duty is for £83.69 & Vat is for £1035.37.
I entered the Purchase Invoice from the supplier with the vat treatment set to 'Purchase of Goods from Supplier outside the EU' and the Var Rate as 0%.
Following previous posts I have created a new Purchase Invoice for the freight forwarder with 3 lines.
Line 1: Duty Vat 0% £83.69
Line 2: COGS Vat 20% £6212.22
Line 3:COGS Vat 0% -£5176.85
The vat treatment is 'Purchase of Goods or services from UK supplier'
Does this seem acceptable?
If so what account should I use for Duty?
Regards
David

Hi David,

I think the VAT Treatment on the second transaction should be 'Purchase of Goods from Supplier Outside EU', but apart from that your transactions sound fine.

Regards,

Thanks for the prompt reply Mark.
What Account should I use for Duty?

Thanks
David

Hi David,

I would choose COGS, but any expense account is fine.

Cheers