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How to enter insurance VAT only invoice on Xero?

Best way to account for this?

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A client has got an invoice from the local garage for the VAT element only on a repair following an insurance claim. I have tried various ways to enter this on Xero but failing, can anybody help?

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By SXGuy
07th Feb 2020 18:23

I don't use xero but I can't imagine it's that different to any other accounting package.

Why can't you add the cost plus vat and then a deduction line at 0% of the net? Effectively leaving just the vat element?

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By carnmores
07th Feb 2020 18:25

removed .

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Replying to Matrix:
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By AWeb72
07th Feb 2020 21:36

Many thanks

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RLI
By lionofludesch
08th Feb 2020 09:36

I did this by entering two lines for the payment.

One for the full bill.

Another crediting the net cost of repairs, less the excess.

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By Cloudcounter
09th Feb 2020 10:00

It's actually fairly simple, but not at all obvious. Enter the invoice with one line and code it to your VAT account. In the VAT rate box select "VAT on imports"

That tells Xero that the amount entered is input tax to be reclaimed. If you put No Vat or any other code it would treat is as a payment of VAT to HMRC and not include it on the next return

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Replying to Cloudcounter:
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By carnmores
09th Feb 2020 11:27

Morning Cloud ! I am probably being dense , but on most new programs you are usually stopped from posting the invoice straight to the VAT control,what am i missing. Nick

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Replying to carnmores:
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By Cloudcounter
09th Feb 2020 15:05

That Xero isn't "most new programs?"

It's no different from any other invoice in principle. In most invoices you post two elements, one for goods and another for VAT, in others there's goods only because there is no VAT. In this case there is VAT but no element for goods. That's not common but it does happen with VAT only invoices on insurance or invoices for VAT on import, and Xero deals with it this way.

Seems quite sensible to me.

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Replying to Cloudcounter:
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By carnmores
09th Feb 2020 15:38

LOL thank you Cloud, always good to know. Nick

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