OK, so when you receive an invoice from supplier, they are not charging you VAT so you enter purchase invoice or simple spend money transaction but don’t use VAT code because supplier is not charging you VAT.
So far so good right?
Then you will receive separate bill charging you VAT and import duty tax. So on £7,500.00, 20% VAT is £1,500 and 5% import duty tax is on £375.00. Therefore you will receive a bill of £1,875.00 right?
Now here is an example of how to record this bill correctly:
Notice how first line is
-7,500 and no tax code is used. This is to reverse purchase created by original transaction. Then next line is
9,000, this is new purchase price which includes VAT 20% and finally the last line accounts for import duty tax
375.00 coming to total of