Hi,
Customs duty invoice is not what I am after.
In the real world - you raise a purchase order e.g £100 net for a foreign supplier. Sometimes you are registered for vat/tax purposes in that country to recover VAT and sometimes you are not. In the instance where you are not - VAT is a real cost for the business i.e is reflected as a cost in the P&L as the VAT on purchases cannot be recovered.
Therefore, the VAT on the invoice needs to be booked into P&L and not VAT accounts. The same principle applies when raising a purchase order.
Jay