Accounting for Import VAT when using Cash Accounting

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Hi. 

I recently asked a question regarding which tax code to use in order to account for import VAT which was very promptly answered. However.....we are using the VAT Cash Accounting Scheme and HMRC say we cannot use this scheme to report VAT and must treat it in 'the normal manner'. So, what entries do I need to make in order to ensure that I am accounting for the VAT on my return? For context, the majority of items come from outside of the EU and no VAT is detailed on the invoices. Very occasionally the items will be shipped via the EU even though our customer is outside the EU and we will either have the VAT deferred or will pay upfront depending on which courier method our supplier uses. Any help would be very much appreciated. I have asked HMRC for guidance but to no avail..

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  • 0 in reply to Andy Rickeard

    Thanks Andy.

    The issue isn't so much the tax code it's the fact that we use Cash Accounting. If we use the suggested tax codes is this still going to pull through correctly for a Cash Accounting Return? HMRC say you can't use CA to report imports and we have to treat it as we would if we weren't on the CA scheme, but I'm not sure how this would work?

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