HM Customs&Excise Monthly VAT Certificate Form C79

HM Customs&Excise Monthly VAT Certificate Form C79

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Hi again.
My company receives Form C79 FRom HM Customs & Excise, it is a monthly VAT Certificate.
How do I deal with it?Is it for my records only or do I need to use it somehow????
The form states "You must keep this certificate to support your claim to input tax"
Please advise??
Thank you
Maria Liatou

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By User deleted
07th Nov 2005 19:18

A further bookkeeping option
The comments below are not specific to any particular bookkeeping system or software.

Personally I recommend the following bookkeeping entries :-

<1> When paying out the VAT in the first place (either direct to HMC&R or via Freight Forwarders) : Debit the amount paid to the VAT account (other entry being bank payment is credit bank a/c, or if on an invoice via Purchase Ledger would form part of the crediting of purchase invoice to supplier a/c)

<2> When the VAT return is completed add the C79 import VAT to the "normal" Box 4 figure.

When the cheque written to HMC&R for the VAT due, then this will have been written for an amount net of the import VAT. This cheque to HMC&R would be debitted to the VAT a/c. And your VAT account should balance.

Complicated, maybe, my method is, but it should ensure that any un-claimed import VAT will sit as a debit on the VAT account until reclaimed on a VAT return. It should highlight any unclaimed amount, since, as balancing the VAT account per the nominal ledger is an important feature of any properly managed accounting system.


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By User deleted
07th Nov 2005 13:18

Keep the form very safe & reclaim the VAT
The form C79 is proof that you've paid the VAT due on importation of goods.

Assuming that the goods are of a sort eligible for VAT reclaim you will want to reclaim the VAT on your VAT return.

My reading of the situation is that if you lose the C79 then you won't be eligible to reclaim the VAT. I've never yet come across someone losing a C79, so don't know how strictly this rule is interpreted. Personally I would scan the C79 form onto your computer so that an electronic copy is held, just to prove that the original existed in case the original were to be mislaid.

Presumably you are aware that you will be paying the VAT stated on the C79 (plus duty if applicable) by direct debit unless you have already paid the VAT and duty to HMC&R ?

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By AnonymousUser
07th Nov 2005 15:00

the posting on Quickbooks or any other software
is fairly straightforward.
Dr. Vat Control account
Cr. Purchases

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By AnonymousUser
08th Nov 2005 11:28

a little bit cumbersome
Mark, what you are suggesting is not the best idea in practice. If a company is using Sage, for example, the idea at the end of the VAT quarter is to produce the reports from Sage and enter the figures directly on to the VAT return.
To make manual adjustments somehow defeats the object of using the software.
However, the underlying principal of control and reconciliation is a good one and can be achieved by other means.
For example, you could keep a spreadsheet of VAT incurred on imported items and reconcile this to the C79 form.
Alternatively, they could be posted to a separate nominal code and reconciled.

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By AnonymousUser
07th Nov 2005 14:08

errrr...???
Hm,I did not quite understand what you mean.Yes I do keep these forms but the previous accopuntant have never included any when he prepared the VAT return. Now I taken upon his role he told me NOT to include them when I prepare my VAT return..If I HAVE to include it on my VAT100 form then do I need to include it manually and where?
How come we don't post the form C79 on Quickbooks???

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