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

From time-to-time, a VAT registered trader in another member state may include VAT when invoicing your business for goods (this usually happens when they do not know your VAT number).

To add an entry to a VAT Return so this Import VAT can be claimed:

  1. Open [ Accounts | Nominal Accounts | Nominal Accounts ].
  2. Create a specific nominal account for Import VAT (or similar).
  3. Create a journal between the Tax on Purchases nominal and the Import VAT nominal.
    • Fill in the Debit column of the Tax on Purchases entry with the amount of VAT you paid / wish to reclaim.
    • Fill in the Credit column of the Import VAT entry with the same amount.
    • Specify a relevant Journal Date.
    • Add a note which describes what the journal is for e.g. Import VAT only for Purchase Invoice XXXX.
      Note: although not compulsory this is highly recommended.
  4. Press Ctrl+S or click the disk icon is the button bar's SAVE button to save the journal to post it to the accounts.
  5. Click Yes to confirm that you wish to post the data to the Tax Register.
  6. In the next prompt to choose either a Net & Tax posting or a Tax only posting, click no to choose Tax only posting.
  7. In the Confirm popup click Yes to confirm the value which will be posted.
  8. Click OK in the next popup informing the user that a journal has been created.

Note - On the VAT Return the above mentioned tax entry will have an entry type of PJNL.

Did you find this article helpful?