account code for import duty/handling fee

Question asked by Pete 8 years ago

My company is not VAT registered, I have made a payment to Parcelforce that includes duty/VAT and their handing charge for an import that is cost of sales.

Can someone please tell me how I deal with this expense? ie can the Parcelforce payment all go under the same invoice and is it still cost of sales? (I have Pareclforce already set up as a customer, but the default account is Postage and packing which I presume is incorrect for this bill)

Thanks

2 Replies

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Paul Scholes

Accountant

1127 entries

Hi Pete

As not VAT registered, any VAT paid, whether on UK purchases or import, is just part of your cost. In situations like yours many businesses will have a "Freight/duty" account in Cost of sales, as well as a similar one in the overheads, for general postage and sales freight.

So, in this case either put it to the account where you put the original purchase or set up a new COS account.

8 years ago

Richard McCormack

256 entries

Hi Pete,

I'm not quite sure I have understood your query correctly, but it sounds to me like you need to turn on the toggle feature called Record VAT on purchases when not registered, which you can find on the Settings > Configure system > Toggle features > Invoicing & expenses screen.

This will allow you to put VAT onto a bill when someone charges it on something you have bought, despite you not being VAT registered.

I hope this helps.

All the best.

8 years ago

Paul Scholes

Accountant

1127 entries

Hi Pete

So, in this case either put it to the account where you put the original purchase or set up a new COS account.

8 years ago

account code for import duty/handling fee

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