Dutch VAT on import DHL invoice

1

I am a new user. This is a How-To question.
I buy from supplier A who is outside of EU. Goods are shipped by for example DHL.

Invoice from supplier A are posted with VAT code “VAT non-EU”.

DHL issues invoice with VAT on import. That invoice shows the VAT charge only. How to process that DHL invoice in such a manner that it is correctly incorporated in the VAT calculations

2

Hi John,
This is more an accountancy-related question than a manager software quesiton, and in fact the solution is very simple :

  1. Supplier invoice : this document will simply mention “goods/services” for certain value X (100).
    you book this invoice on the corresponding supplier and give the goods or services a chart of account code as you like, referring to purchase of goods/services from outside of EU.
  2. DHL invoice : DHL will have invoiced you the VAT (e.g. 20%) on the declared invoice value (100)
    Just book the DHL invoice under DHL supplier and enter the 20 % VAT paid to DHL as "VAT claimable/deductibe on non-EU purchases (an “asset account”)

the combination of the 2 invoice booking will result in this situation :

Cost / Goods-services non-EU : 100
Assets / Deductible VAT : 20
Supplier no EU 100
supplier DHL 20

when you pay the supplier and DHL, simply Debit them and credit your bank account.

IN your VAT statement, put the 20% claim where it’s supposed to be

Hope this helps

3

@John2, make sure you have read and understand the Guide about tax codes: Create and use tax codes | Manager. You will have more than a dozen in-built codes to choose from:

18%20AM

@XaltPay seems to be suggesting you post taxes to accounts you create on your own. That would bypass all of Manager’s tax features. You should be applying in-built tax codes to line items according to their characteristics.

If you search the forum, you will discover many discussions, with examples of how to do exactly what you ask.

4

@John

Suppose you imported goods at € 100,- from outside the EU
DHL has send you the VAT tax invoice for € 21,- as part of the import process
Your question is how to book the invoice from DHL as it is only tax.
Well the answer is quite simple
When entering this DHL invoice book an amount of € 121, including VAT on the first line
Enter a second invoice line where you enter minus € 100 and no VAT Use for line 1 and line 2 the same G/L account e.g. “Kruisposten”.
The nett effect is that Manager will book € 21,- on the VAT account and on line 1 and line 2 you book debet and credit the same amount so the effect is nil.

Kind regards,
Hennie.

5

The thing is, that when this procedure is executed, the postings are correct, but the DHL tax deductible does not show on the tax report. In this method the DHL VAT amount would be posted as the basis on which VAT is calculated and applying VAT =0%

6

Hi Hennie,
that is correct, but isn’t by doing so the tax basis in 4a (leveringen uit buiten de EU) double the actual amount (since also the non-supplier has sent an invoice)? And also probably not exactly double, since the basis of calculation is goods value + transport + ??

7

Hi King Tut,
Yes I have read it, and I agree with you that XaltPay’s method bypasses the tax features. That is exactly my issue.

I have been going through the forums and did not find the correct solution to my issue.

The problem is that the complete posting of this kind of invoices is split out in two invoices. One from the supplier and one from in this case DHL, where (to complicate things) the basis of VAT calculation may be different.

8

@John2
I just did some testing in my “test-business”.
Do the following:

  • You post the invoice from your non-EU supplier say € 100 and use the VAT code 21% non-EU
    This invoice will appear on the tax report on line 4a as imported € 100,-
    and VAT to be paid € 21.- At line 5b an amount of € 21,- appears as “voorbelasting” and the sum to be paid is € 0,-
  • When you now enter the DHL invoice and you book € 121 on the first line with the Standard VAT code 21% tax inclusive and on the second line € -100,- with no VAT code. This invoice will be posted for a total of € 21,-.
    In the tax form this invoice shows at line 5b for € 21,- as “voorbelasting” and the balance to be paid is € -21,- which is the correct amount.

I hope this explanation solves your problem.
For your information, I am Dutch and a retired financial controller so I know by experience what I am talking about.
Lots of success,
Kind regards,

Hennie.

1 Like
9

Goedemiddag Hennie,

Dank voor je uitleg. Ik ben ook meer dan voldoende op de hoogte van de BTW regelgeving, was alleen zoekende naar een methode om het correct in manager.io te krijgen. Dit zal zo wel werken lijkt me,

10

@John2
Probably you don’t know but all conversation on this forum is in English. In this way everybody can follow what is being discussed.
For other forummembers I’ll translate what you wrote:

Good afternoon Hennie,
Thanks for your explanation. I know reasonably well the VAT-legislation. I was searching for a method to process this the correct way in Manager. It appears to me that your solution will work quite well.