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Xero VAT Cash Accounting and PVA

Xero VAT Cash Accounting and PVA

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I have posted this before but wondered if anyone had any updated guidance on this.

Can anyone advise as to the correct procedure for dealing with PVA in Xero when using cash accounting?

VT Accounts help sets out how this should be dealt with in VT https://www.vtsoftware.co.uk/transplushelp/purchase_of_goods_from_the_ec... but I can't find anything on Xero.

My understanding is that the PVA amount should end up in boxes 1 and 4 and that this is achieved using the 'Apply Postponed VAT Accouning (PVA) adjustments' option on the Xero VAT Return window and that the value of imported goods, transport and fees should be included in box 7 on an accruals basis.

Is it a case of making a manual adjustment to remove any cash accounting entries from box 7 relating to the imported goods, transport and fees paid supplier invoices and adding the actual invoiced value of goods/costs imported in the quarter? 

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By rmillaree
30th Jun 2022 08:19

"Is it a case of making a manual adjustment to remove any cash accounting entries from box 7 relating to the imported goods, transport and fees paid supplier invoices and adding the actual invoiced value of goods/costs imported in the quarter?"

Yes seems reasonably clear cut this is the case link below confirmd "cash basis" not used for imports -specific xero warning - its easy to mess up on the pva entries if you are not careful - i remember we somehow managed to double up figures (not me doing entries so other person may simply have been in numpty mode!) when we made adjustments - so be careful with everything you do in that regard.

Always do complete vat export before and after so you can see exactly what is happening.

https://www.gov.uk/guidance/complete-your-vat-return-to-account-for-impo...

Very annoying when hmrc are adding stupid silly stuff that is bordering on the impossible to easily do right - can we blame xero and sage if they dont make it easy to flag any such imports so the vat return is seemless - hell yes we can.

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