You must inform HMRC when importing supplies into the UK as there are rules to pay import VAT depending on the VAT treatment of the taxable supplies.
As a brief overview, there are two main rules with importing supplies, which can be categorised into Acquisition Tax and the Reverse Charge rule. Please see here.
In order to account for this in Clear Books, you must enable a feature by heading to Settings > Configure system > Toggle features > VAT & bank import tool > Tick on the Reverse charge & EC rates toggle.
Firstly, Acquisition Tax will refer to goods imported from an EU country, therefore, when creating these bills, you must select Goods from EU Supplier in the VAT treatment field with a 0% (zero rate) VAT rate.
Consequently, when running a VAT return, the bill will appear in Boxes 2, 4, 7 and 9 with the total VAT of 0.
In contrast, the Reverse Charge rule will only apply to services imported from overseas suppliers with the exception of the Place of Supply rule. Where this applies, you act as if you’re both the supplier and the customer. You charge yourself the VAT and then you also claim it back.
When raising a bill in Purchases > Bills > Create Bill, you must select Services from/outside EU Supplier in the VAT treatment field.
Consequently, when running a VAT return, the bill will appear in Boxes 1, 4, 6 and 7 with the total VAT of 0.