Table of Contents
Introduction
Use this procedure when you pay VAT directly to Customs while collecting your goods.
Steps
Go to Nominal > VAT Return > VAT Transactions tab, and click the Post VAT Journal button.
The VAT Control Account is selected automatically and greyed out to show it cannot be changed. All contra entries are posted to this account.
Select the Nominal account used to pay VAT (e.g. bank or cash account VAT is paid from).
In the Local VAT field, enter the amount paid to Customs.
Since you're making a VAT payment, in the D/C field choose 'Credit'.
The VAT field shows only VAT rates that support direct VAT posting. (Set these up 👉 here.) Select the applicable rate.
Note: Selecting a VAT rate reflects the rate applied by Customs, which must be reported in the VAT Return. VAT isn't charged twice.
Fill in the Date, Ext Ref (e.g. VAT Assessment identifier) and the remaining fields as needed.
Select Add line item for every VAT transaction you have to record.
Click Post in the bottom right when ready.
Result
A contra entry—in this case, a debit—will automatically be posted against the VAT Control Account for the inserted line items. You can check this in Nominal > Audit Trail.
Correcting Mistakes
If you make a mistake, don't worry! You can reverse and repost the transaction from Nominal > Transactions, just like any other transaction.
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