VAT and Duty Reconciliation

When effecting importation and clearance of non-EU goods, many freight operators will pay VAT and Duty on behalf of the importer, using their own deferment account. Under these circumstances, it is absolutely essential that management has complete control over the deferment process and that they can easily reconcile all VAT and Duty amounts paid to HM Customs and Excise, with the amounts actually invoiced out to customers.

The ForwardOffice VAT and Duty Reconciliation module collates information from a number of different sources, to provide accurate and concise control of your company’s VAT and Duty deferment account. It maintains a simple two-sided ledger consisting of amounts paid on your deferment to HMC&E, and the corresponding amounts invoiced out to your customers.

When integrated with the ForwardOffice UK Import Customs Procedures module, deferred amounts can be automatically captured upon Customs Entry acceptance, and then matched off when each VAT and Duty invoice is raised.

The module provides a company-wide reconciliation database, removing the need for manual procedures to maintain a written ledger or spreadsheet. By providing a seamless automation of many of the processes involved, it greatly simplifies this onerous administrative task, thus improving accuracy and productivity.

Key Features:

  • Automatic data capture of deferred amounts via UK Import Customs Procedures module at the point the Entry is accepted by HMC&E
  • Optional automatic creation and print of the VAT/Duty invoice at the same time
  • Automatic update of “Invoiced” amounts in VAT/Duty ledger as the Invoice is posted
  • Ability to manually create a reconciliation record where clearance is undertaken by a third party, using your    deferment
  • Powerful reporting option with filters to identify entries in various states:
    • Variances between amounts invoiced out and amounts paid to Customs
    • Un-invoiced deferred amounts
    • Deferred, FAS or Other payment types
    • Queried amounts
    • List order sorted by a variety of methods such as Job Reference, Entry Number, Date, Value, Client, Customs statement, Batch Number, etc.
  • Spreadsheet export feature
  • Batch Matching and fast “Ticking” feature when reconciling HMC&E statement allows balanced items to be quickly checked off
  • Check total deferment liability at any point in the statement cycle
  • Review all items on a specific customs statement