Hi. I have several VAT/Duty invoices that our company have paid (we import machines, so pay a lot of VAT for shipping). How do I put that into the system?

Hi @michelle-microma 

I think you have invoices from the shipping / customs agent which include the cost of shipping plus import VAT / Duty?

Is that correct?

The shipping cost - enter as any normal expense.  This is probably outside the scope of VAT but I'd usually enter as Z=0% VAT code or a specific Import=0% code just to make sure it appears on the VAT100 (NoVAT code does not).

Duty is the same - non-recoverable so treat as an expense or as an uplift on the cost of the machines.

The VAT is the tricky one.  If you've paid this to the agent, it can then be recovered on your VAT return.

There are several methods on here for creating VAT-only invoices.  Search around & choose your favourite.  My preference is to add two lines to create the Import VAT:

Line (1) an amount equal to 5xVAT (so that using S20% code gives the correct VAT)

Line (2) minus the same amount with Z=0% code, so that just the VAT remains.

Hope this helps.