Postponed VAT with currency gains/loss

There’s 2 Methods for dealing with Postponed VAT.

Method 1 - Manually Adjust the VAT Return.

You need to manually adjust the VAT return for difference from the HMRC postponed import VAT statement.

Example

I’ve entered 3 Euro Postponed VAT Accounting invoices.

So we now have an example of all 3 monthly postponed import VAT statements for the VAT quarter ending June 2022.

This is the VAT Return for the Euro Postponed VAT Accounting purchase invoices entered for the quarter.

As you can see from the workbook below, the total VAT from the QuickFile VAT return in box 1 and 4 is £15,531.71 .
Although HMRC calculated £15,521.49.

Leaving a difference of -£10.22.

Now Box 1 and 4 matches the total amount.

Method 2 - Using the Postponed VAT Accounting option on the invoice.

Enter the invoices with zero VAT and tick Postponed VAT Accounting (under additional VAT options) on the purchase invoices.

Adjust the total on the VAT return from the monthly postponed import VAT statements provided by HMRC for the VAT quarter.

Summary

Both options provide the same result on the VAT return and are correct to the HMRC total postponed import VAT statement amounts for the quarter.

Box 7 does not need to be adjusted as any currency gain or loss will be calculated in the accounts and HMRC only provide the total VAT postponed figure (Box 1 and 4).