Tax Liability for GST paid to Customs on imported goods.
Has anyone experience with separating out the GST paid to Customs on imported goods so I can report it separately on our GST Return.
I usually just run the Tax Liability report monthly and complete our paper return, however we now import goods (not for resale) for which we pay GST, the monthly GST value needs to be reported as a separate line item on our return.
I cannot get a report to give me the GST paid unless its lumped in with GST reclaimed from purchases.
This means I have to sit and manually calculate our return which takes forever.
Any help please.
Answers
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This is what I have done in this scenario, if it is what you are referring to. The amount of the GST is not the normal 1/11th, so assuming the amount being paid is 12345.00 and the GST IS 1400.00
I enter the cheque for 12345.00 broken down as
Purchases (e.g.). 14000. NCG. 1400
Purchases. - 3055. NCF
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It's important to not duplicate the original paid cost & at the same time, generate only the customs-determined value & related (claimable) GST.
I have a document I've written up on how to do this - Happy to send it through if you'd like to shoot me an email direct @DiSmith ๐
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Hi Kris,
Thank you for your quick response but no, its more about having the Tax Liability (or any other) report giving me figures for
GST reclaimed from purchases
GST reclaimed from Customs
Net GST to pay (or reclaim if negative)
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this will be reflected in the tax liability and tax summary reports, I donโt know any other way to split the GST between different tax liability accounts, maybe Shaz has the answer
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My process ensures the GST reports correctly & shows examples of how this displays on the tax reports ๐
Generally, there is no GST charged - by your overseas Supplier - on imported goods themselves (aside from a few exceptions) Instead, Customs determines the taxable value of the goods & GST at 10%. That GST is the amount claimed โฆ along with any GST charged by your local freight/shipping agent (which I think is what you're referring to as the "GST reclaimed on purchases" ?)
The 2 GST amounts are not reported separately on the BAS though โฆ
All GST paid - as per your local freight/shipping agent service charges PLUS the GST amount as determined by customs - is included at 1B.
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I have broken down as per my example from the beginning and always balance my tax payable account, which is why I use the purchases account or the relevant expense account and not freight or customs
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@Kris_Williams It's important to record the original goods purchased (amount paid to the overseas supplier) with NO tax code.
The coded customs entries are then only for the purpose of generating the Customs-determined GST amount only & do not impact the financials. Otherwise, you'll be duplicating the cost of the goods ๐ฌ
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yes thatโs how I do it
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