Knowledge Center

Postponed VAT in the UK means that you are not paying the VAT upfront at the border. You are handling it on the upcoming VAT return.

Reverse charge in the UK is only used for services. Goods imported into the UK - use postponed VAT.

Vat code 56 will be set up with VATREF=EUPURC and EXPPURC. Import from EU country or from nonEU country will thus use VAT code 56 as a default.

Company using RamBase is receiving Monthly postponed import VAT statement from HM Revenue & Customs. In that statement, the postponed VAT is stated.

Calculate the Net amount based on the VAT amount stated in Monthly postponed import VAT statement from HM Revenue & Customs.

Create a manual ATR where you use the GL account set up in ACD/EUPURC or EXPPURC (normally the same). You create one line in credit for vat code 56 and one line in debit for vat code 52 for the net amount. The sum of these two lines should be 0.

VAT code 52 should be set up with GL account for debit and credit amount (reverse charge).

In the manual ATR, create additional lines using the GL accounts set up in VAT code 52 for the VAT amount. One line should be debiting the VAT amount, and one line should credit the VAT amount. In sum these two line should be 0.

Register the ATR to ST=4 and make sure it has a VAP document. Create the VAP document manually via menu option if needed.