[Question] Input Vat on Imports

[Rene02]

We are a registered VAT vendor, we have imported goods from China. A shipping company has delivered the stock to us, on the invoice is an amount for Customs Vat how do I go about claiming this? would it be handled as normal input, it's my first time handling the import side of accounting not 100% sure on the way to go about it, if anyone could help please.

[Neville Bailey]

Hi Rene,

What accounting system are you using?

[Rene02]

Hi Neville,
We are using Pastel.

[Neville Bailey]

OK, then you need to use VAT type 06 on the customs VAT line item on the supplier invoice, and allocate the transaction to GL code 9990/000 (suspense account).

VAT type 06 takes 100% of the transaction value (the customs VAT) to the VAT control account, as input tax. Even though you have used the suspense account, no value will be posted there, as 100% of the transaction will be treated as VAT.

[Rene02]

And this vat is then claimable? Customs vat on imports.... sorry just making sure that I have all my "ducks in a row" We have imported the goods for resale.

[Neville Bailey]

And this vat is then claimable?

Yes, it is.

[Rene02]

Thanks for all your help!