Create & Post a Payable for Goods Imported from a non-EU Country

Overview

When goods are imported from a non-EU country, no VAT (valued-added tax) is calculated on the Payable. For the VAT that will be due on the import, another payable is created that will be VAT only to pay the VAT amount on the import. Typically, the VAT amount is paid to an import agent/freight forwarder, and will be reclaimed once the C79 certificate has been received from the government. Form C79 is evidence that the import VAT has been paid. 

Do you want to:

• Create & Post a Payable for Goods Imported from a non-EU Country
• View the Payable in VAT Reporting - Goods Imported from a non-EU Country
• Create & Post a Payable with Import VAT from a C79 Certificate
• View the Payable in VAT Reporting - Import VAT from a C79 Certificate

Create & Post a Payable for Goods Imported from a non-EU Country

On the initial purchase of goods imported from a non-EU country, an import VAT Tax Group/Tax Code can be used to create a Payable in the amount owed to the vendor. Since the VAT amount is not paid directly to the vendor, no VAT amount will be included on the Payable. 

1. From Accounting Home, under Cash Out select Payables (Vendor Invoices).
2. From the list view, click New to create a new Payable. The New Payable dialog box displays.
3. If you click New, select or enter the following:
   
   1. Ledger
   2. Currency
   3. Vendor or Contact
      Important: Payee cannot be an Employee when a VAT Tax Group is selected on a Payable Line. 
   4. Payee Reference
4. Complete any additional fields, if necessary. 
5. Click Save. The Payable record displays.
6. Scroll down the page to the Payable Lines related list. To add Payable Lines, click Mass Add/Edit Rows.
7. Click Add New Line.
8. (Optional) Click the Lookup icon to search for and select a Product for the line.
9. Enter the Quantity.
10. Enter the Unit Cost - the cost per unit. This is a required field.
    Important: The Total field is recommended to be read-only on the user interface. The amount that is entered in the Unit Cost field multiplied by the Quantity will determine the Total (Quantity x Unit Cost = Total). If the Quantity field is blank, upon saving, a Quantity of one will auto-populate for the line.
    
    The Total field is controlled by Field Level Security (FLS). Therefore depending upon the permissions granted through a user’s Profile and/or Permission Set(s), the Total field might be editable. However, editing this field directly in the UI is NOT recommended.
    
11. Enter or search for an Expense GL Account.
12. Click the Lookup icon to search for and select an appropriate purchase of goods imported from a non-EU country Tax Group for the line.
    Tip: To view all of the available Purchases Tax Groups for your country, enter the first three letters of the Tax Group. For example, for Great Britain, enter “GBP” in the Lookup search textbox and click Go. Otherwise, you can view all of the available Tax Groups from Accounting Home, under Master Data Setup | Tax Groups.
13. Optional) Add additional lines.
14. At this point, you can select one of the following: Save & Complete, Save & Post, etc.
    Note: When the record is posted, the Input VAT amount will display as zero because the VAT amount is not paid directly to the vendor. 

Note: Posted records can be viewed in Avalara VAT Reporting.

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View the Payable in VAT Reporting - Goods Imported from a non-EU Country

1. To view the credit memo in Avalara, log into your VAT Reporting Account. 
2. From the Transactions menu, select Processed Documents.
   
   
   
   
3. (Optional) Select/enter any or all of the following, and then click Apply.
   1. Company
   2. Processed After
   3. Processed Before
   4. Filename Contains
   5. Only Show Manual Documents (Only applicable if manual documents were created in Avalara VAT Reporting.)
4. Under File name, click the hyperlink for the Payable that you want to view.
   Note: In addition to the Payable number, each filename includes a date and time stamp. This information is included so that each Payable/Invoice Number can be uniquely identified. 
   
5. Click the Invoice Number hyperlink.
   
   
   
   
6. Click the Invoice Number hyperlink again to drill-down for viewing line item details. Then, scroll down the page to view each line, as necessary.
7. Scroll down the page to the Invoices Lines section. The VAT amount displays as zero.
   
   
   
   
8. Scroll down the page to display the Additional Document Data.
   Note: In the example below, only the Taxable Basis amount is included on the VAT Return. The VAT amount will be included on a different invoice once the C79 certificate is received.
   
   
   

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