Postponed accounting for UK imports (not for resale)

Question

Hi could any one advise. 
 
 We recently starting buying items from the UK (not for resale) but for repairs to vehicles etc. I used T40 VAT rate so that it would show up in sales and purchases on the VAT return and in the postponed accounting box. However, T40 applies VAT to the invoice on the supplier account. So when I go to match payments as I don't pay the VAT on a UK invoice, I am left with the VAT amount sitting in the supplier account as unpaid. Can anyone advise what I should be doing with these invoices as obviously I am doing something wrong. Many thanks. 
 
 Pam

AndyR. · Accepted Answer

Hi Pam,

Thanks for posting.

There are several codes that can apply to good imported from the rest of the world but not for resale, T40 is the code for Standard rate while T42 is the code for zero rate. It may be that the T42 code applies in this instance. The following article explains how these codes impact your VAT Return:

Default Tax codes - Ireland

I recommend checking with the Revenue to see how your return should be affected and then you'll know which code to use.

If this helps, please click Verify Answer.

Andy,
Sage UKI

Sage 50 Accounts

Postponed accounting for UK imports (not for resale)

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