Hi Neil,

Thanks for using Sage City.

When purchasing goods from countries outside of the EC, if you receive a import VAT certificate, C79, you can claim your import tax back.

No VAT is charged on the invoice for the goods but you receive an extra invoice from the import company for the duty and VAT. You can't reclaim any import VAT paid until you receive the C79 form from HMRC.

We recommend to set up a new supplier account for the import company to post the import duty and VAT.

To record the purchase of the goods post a purchase invoice to the supplier's account for the value of the goods with a value in the Net column only using tax code T0. No VAT is calculated.

To record the import duty, post a purchase invoice to the import company using the duty nominal code post a purchase invoice entering the net amount in the Net column, the VAT charged on the duty in the VAT column and tax code T1.

To record the import VAT post a purchase invoice to the import company using the duty nominal code entering zero in the Net column and the import VAT in the VAT column - use a T1 tax code.

If this has answered your question please click More > Verify Answer.

Regards,

Paul

Sage UKI