Simplifying import docs like postponed VAT

Simplifying import docs like postponed VAT

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VEIGHT

Original Poster:

2,371 posts

235 months

Saturday 14th September
quotequote all
We currently import most of our products from a few main suppliers; however, more recently, we have been growing and using many smaller suppliers, all mainly in China, India, and Europe.

We use postponed VAT and get C79's; however, it is taking our bookkeeper hours and hours each month to reconcile and gather the needed paperwork. Sometimes, we can't even find the correct import docs as some suppliers don't declare the correct details.

There HAS to be a better way to deal with this - does anyone know?

One suggestion is to use our accounts to collect, as when we collect pallets, we use our forwarders, which works well. It's all the small DHL and FEDEX that causes a paperwork nightmare!

Any hints or tips gratefully received!

AndyAudi

3,265 posts

229 months

Saturday 14th September
quotequote all
My understanding is this is to prevent cash-flow implications between the paying VAT on import & recovering it on your VAT return. It’s not a requirement to use postponed VAT, it’s supposedly a potential beneficial option

Companies I have operated in do not use as was relatively insignificant to them, (with the exception of one project that was postponed & deferred as high value items would exported again the following year)

I don’t believe it’s an all or nothing approach to Postponing the VAT or just paying on entry, if it’s the little ones that’s the hassle could you just accept paying VAT on entry & reclaiming on VAT return like normal invoice?

VEIGHT

Original Poster:

2,371 posts

235 months

Sunday 15th September
quotequote all
Thank you - that's a good idea, I'll check who we are postponing VAT with. and change that back.

The main issue is the paperwork. Some far east sellers that we deal with use different shipping agents each shipment. That makes it hard to tally up who is what from as all the paperwork doesn't match the suppliers details.

Maybe we should just get everyone to use OUR shipping accounts with Fedex / DHL etc ?

Ean218

2,004 posts

257 months

Monday 16th September
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VEIGHT said:
Maybe we should just get everyone to use OUR shipping accounts with Fedex / DHL etc ?
That in itself could get expensive as countries like China heavily subsidise their carriers.

VEIGHT

Original Poster:

2,371 posts

235 months

Tuesday 17th September
quotequote all
Everything we currently buy in small qty comes via HK and Fedex / DHL normally.