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
Replies (5)
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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.
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 ?