Depends on the software you are using, and when you received the C79

If it is Sage, you enter the DHL invoice (cant remember the nom code for  import duty but it is 5101 I think) with only the VAT element entered and set at T9. this set the VAT as unclaimable.

You also enter the duty value as normal, with the appropriate T code (normally zero from the ones I have done)

When you get the C79 you have to do a Journal to reverse the VAT posting to make it claimable DR 5101 VAT Amount T1, and Cr 5101 VAT Amount T9. This reverses the original entry, and puts it on to the VAT return.

If you are not using Sage the principal is the same but may have to adapt it to suit your software

HTH

Bill

See my post below

FoxAccountancyServices wrote:

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On sage, I post the Hong Kong supplier invoice as T0, and then I post the DHL invoice as;

this means the GBP paid will go into box 7

Duties - say, £50 to 5101 as T1, and then I manually change the VAT.

this means the £50 would go to duties as a cost (appearing in box 7 as net purchases).  The VAT claimable is the VAT element on the C79, and doesn't include duties - duty is not VAT

Then, if there is an admin fee, I put it on the next line down, as T0.

This again would go as a cost with no VAT claimed (included in box 7)

This posts the duty, claims the VAT and post the admin.

I do this as a bank payment, because my client usually pays around the same time as the invoice date.

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 Lets say you pay £1000 to Hong Kong and you get a DHL like this

Duties £100

VAT £200

Admin Fee £10

Box 4 will show £200

Box 7 will show £1000 + £100 + £10

That's how i do it, but I never care if my net purchase figure is slightly wrong, so long as the VAT claimed is right!  I have never found anything that said whether duty was exempt or outside of the scope of VAT, so I played it safe and went with exempt.