How To: Add an entry to your VAT Return to claim Import VAT

Table Of Contents

Creating an Import VAT Journal
Additional Information
Occasionally, a VAT-registered supplier in another country may charge VAT on an invoice issued to your business. This commonly happens when the supplier does not have your VAT registration number.
Where appropriate, you may need to record this VAT separately so it can be reclaimed through your VAT Return.

Creating an Import VAT Journal

  1. Open [ Accounts | Nominal Accounts | Nominal Accounts ].
  2. Create a new nominal account specifically for Import VAT (or a similarly named account).
  3. Create a journal between the Tax on Purchases nominal account and the Import VAT nominal account.
  4. Complete the journal as follows:
    • Enter the VAT amount you wish to reclaim in the Debit column of the Tax on Purchases entry.
    • Enter the same amount in the Credit column of the Import VAT entry.
    • Enter an appropriate Journal Date.
    • Add a meaningful note describing the reason for the journal, for example:
      Import VAT only for Purchase Invoice XXXX
    Tip: Although adding a note is not mandatory, it is strongly recommended as it provides a useful audit trail for future reference.
  5. Press Ctrl+S or click Save to post the journal.
  6. When prompted to post the journal to the Tax Register, click Yes.
  7. When asked whether to create a Net & Tax posting or a Tax Only posting, click No to select Tax Only posting.
  1. In the confirmation window, click Yes to confirm the value being posted.
  2. Click OK when the system confirms that the journal has been created.

Additional Information

Once posted, the VAT entry will appear on the VAT Return with an entry type of PJNL.
This allows the VAT amount to be included in your VAT reporting while maintaining a clear accounting record of the adjustment.

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