How To: Claim back Import Tax when using Country VAT

The following describes the process required to claim back import tax for a non-UK Company when using Country Specific VAT.

The credit will appear in the [ Accounts | Tax (VAT) | Tax Register ] screen when filtering for the country the entry is for.

Prerequisites

• A supplier, for example the Revenue Commissioners for Ireland, with the following options enabled in the
  • Supplier: ticked
  • EC company: ticked
  • Company pays tax: ticked
• You must be using Country Specific VAT with the different Tax rates setup, see How To: Setup Country Specific VAT.

Adding the SPLedger Entry

1. Open an Accounts screen (show me how).
2. Open the [ SP Ledger ] tab.
3. Press Alt+E or click to enter edit mode.
4. Press F3 or click to add a new item.
5. Use the Lookup dialog box to locate the supplier (for example the Irish Revenue Commissioners) that you wish to post the credit for. A new row is added to the grid for the selected supplier.
6. The following SP Ledger options must be set:
   1. Post: if this checkbox is:
      • TICKED (default): If you have already received the Supplier Credit note.
      • UNTICKED: If you have not yet received the supplier credit note and allows the transaction to be posted later.
   2. Pay: this option must not be ticked.
   3. Crd: must be TICKED as this will mark the SP Ledger entry as a Supplier Credit.
   4. S/P: must be set to P to indicate a Purchase ledger entry.
   5. Conversion Rate: change the conversion rate if required (Optional).
   6. Nominal: nominal account, however no entries are made to this nominal when this journal is posted.
   7. InvRef: the supplier's invoice reference.
   8. InvDate: the date of the invoice.
      Note: if the invoice date is today's date then a warning message will appear.
   9. TaxRt: should be the rate for the specific country the entry is for.
   10. Tax: enter the amount you are claiming back.
   11. Description: used to describe what the invoice was for (Optional).
   12. Status Note: can be used to track invoices that require approval from various departments prior to posting (Optional).
       
       
       
       
7. Press Ctrl+S or click to save the transaction.
   
   
   
   
8. Check the information and acknowledge by clicking on the blue circle or yellow warning buttons.
9. If the credit for today's date, acknowledge the warning message.
10. Click on OK in the Information popup.
11. Click on OK to the Information popup showing the SPLedger number.
    
    

The following postings are made:

Note: As when using Country Specific Tax and committing your tax register, the tax in the Tax on Purchases nominal will need to be cleared down.

See Also

• Accounts overview