Hi there - can I just run something passed anyone!! If I have a UPS invoice for Import Vat and Brokerage Surcharges am I right in thinking that I can claim the VAT element back? I know that this will sound like a ludicrous question to most of you but I just want to double check!!
The UPS invoice will probably say that it a disbursement/ outside the scope of VAT or similar. Which is the VAT they have paid over when the goods were imported, plus their handling fee which is exempt.
You can only claim back this VAT when you have received a document from HMRC called a C79 certificate. This is the evidence that VAT has been paid over to them.
There are a number of bookkeeping entries need to post the transactions, depending on your software
Sorry to drag up an old thread but I've also got a UPS Invoice and wanted to check the "brokerage surcharges". Is this just an admin fee? At the moment I've put it to "admin". Also would it be "within the scope of Vat" for the return ie included in Box 7.
It may have a breakdown of the VAT on the invoice somewhere. From my experience of FedEx the VAT disbursement is outside the scope (until you receive C79), any duty is outside the scope, the brokerage surcharges/ fees etc are zero rated.
I personally post them all to Import Duty, in the 5*** range, as it is a direct cost of obtaining the purchases (assuming they are for resale)
Yes the invoice has a breakdown of VAT but problem is I don't have a C79 and as this invoice is dated in November 11 I don't think I'm going to get one. Breakdown is £5.05 VAT and brokerage surcharge is £11.00. Since I first posted I decided that they were probably "direct costs" so have posted both of the charges to direct costs - other. Would the VAT be ok in direct costs since I can't claim back.
So from your post Import Duty would be outside the scope of VAT and so would the VAT as I can't claim it back.
Is this the same for the likes of TNT and Air Sea Scotland as I've a few invoices from them too. I do have the C79 for these ones though so its just the Import Duty and Admin charges I would post to direct costs -other and keep outside of VAT. I use VT transactions so it's just a case of ticking if the are inside VAT and unticking if they are outside VAT.
