Processing GST on Imported Goods

Legacy KB ID: 3804

Question

I have already received and paid for my imported goods, but the Customs Duty and GST bill on those goods has just arrived.  How do I process these expenses?

*****  This KB has been replaced by KB 4951   ******

Answer

It is common among importers that the Customs Duty, Transport, Insurance and GST costs are charged after the imported goods have been received and possibly paid for. 

At a later date, sometimes accompanying another delivery of imported goods, will be a bill for other charges which include Customs Duty, Transport, Insurance and GST costs for the earlier delivered imported goods.  Payment is to be made to the Customs Office and not the supplier of the goods.    

The amount of the GST will be on the Customs’ Office valuation of the imported goods plus the GST on transport and insurance charges.  This may differ from the company’s actual costs.

 

Detailed Instructions

In some steps you will need to manually change the amount of tax calculated.  To enable this feature, set the Tax Preference to allow changes to tax amounts:

·         Edit > Preferences > Tax > Company Preferences

·         Click YES for Do you want to edit tax amounts?

·         Click on OK to save

It is assumed that the bill for the imported goods has been entered for the net amount with no tax assigned – that is, with the purchase tax code (QuickBooks defaut: NCG) manually changed to 0%.

 

Create service items for the charges associated with previously delivered import goods:

·         Customs Duty

·         Transport Costs

·         Insurance charges

Create a bill for the additional charges:

·         Payee is the Custom Office – full details on the invoice.

·         Enter Transport and Insurance charges and Customs Duty with the appropriate Tax code (QuickBooks defaults are NCG and NCF). 

As the amounts are for services and charges incurred in Australia, the standard rate of tax will apply (QuickBooks default codes NCG: 10%; NCF: 0%). 

·         Enter your item for the imported goods received earlier with a net amount of 0.00.  Apply the Tax Code for purchases (QuickBooks default: NCG) and manually change the Tax Amount to the amount levied, based on the Customs Office valuation of your imported goods. 

When the bill is completed, turn off the ability to change the tax amount.

 

*****  This KB has been replaced by KB 4951   ******

How did we do?

Related Articles

Powered by HelpDocs (opens in a new tab)

Powered by HelpDocs (opens in a new tab)