Hope you can help. I've got a VAT question now. If good are being imported from outside the EU and the duty is being paid but not reclaimed on the VAT return would you just add the value of the duty to the cost of the goods and include it in the Purchases price.
When you say the duty is being paid do you mean duty and VAT? Why are you not reclaiming the VAT? The duty itself I think is included in the purchase price or Cost of sales as it is part of bringing the goods in to sell on. The company I work for import quite a lot of goods and at the end of the month HMRC issue us with a C79 certificate and that lists all of the VAT we have paid on imports from the previous month.
