I buy amber from oversea on regular basis and i always get an invoice for the VAT after i bought it from customs.
I have to enter this with a journal entry beacause it is a different invoice i link it to tax payable and inter account transfers and balance the interaccount traansfer again with my bank accoont
not too hard but when i use a report with a tax summary over that specific period it does not show, so i always need to remember my journal entry when i do the TAX return.
is there a way to make it show ?
No, you shouldn’t be using a Journal, you need to enter the VAT via a Purchase Invoice but you also need to add an extra line to that Purchase Invoice.
Let say the value of the VAT is 100 being 10%, so the imported item was worth 1000.
On the first Purchase Invoice Account line you would enter the item as per a normal purchase.
On the second Account line re-enter the item but with a matching negative number and NO tax.
Now it should appear on the reports
Ah yes great, i did not think of that.
I was just about to do my administration so i wil try it right away
This is not working for me as the purchasing invoice is issued in March and I receive the good in May, so therefore the VAT belongs to a different period. I need to be able to post the vat directly to the vat account in the journal. I have the same issue, that the tax summary does not show the vat. Also the purchasing invoice is from a country outside EU.
Can you be more specific? “This is not working for me…” doesn’t tell us what you are having trouble with. The topic is about VAT bills on different invoices. Your post seems to be about different dates. Describe your scenario completely.
Sorry if I am not very clear. I purchase goods from abroad, when the goods arrive in my country the tax authoroties tax the shipment with vat. The invoice for the shipment is issued in March, and the shipment arrives in May so that I need to post an invoice with only vat as the charge. If I do that (which i was able to do before) it appears as Retained earnings in the balance. I tried to post the invoice in the same period I got the invoice for the vat, then it appeared as tax collected which is not correct, it should be located under purchases.
Tax amounts never have and never will appear under any purchase expense account. When properly entered, they are posted to Tax payable.
For tax bills from customs authorities, see the Guide: Manager Cloud. Read the information about custom tax codes. You need to use a 100% rate. In general, there is no need to create a purchase invoice for the tax bill if it is paid when received. If you do, you have to create a payment anyway; so it is simpler to just enter the payment.
Then create the Purchase Invoice for the VAT in May, with the Tax Authorities as the Supplier using the two line example above, the Account being used can be any account as the Amounts cancel out…
When they stated “it should be located under purchases” they were actually referring to under Purchases on the tax report.
Thank you for that clarification, @Brucanna.