GST Paid Up front at point of entry

1

Have bought and paid for some equipment from the UK. Cost when FOREX bought was A$6709.36 which was entered as GST Free. When the equipment arrived I got a better FOREX rate from Customs which meant they worked out the cost as A$6462.10 which means I paid them A$646.21 in GST. How do I sort this out please? All my ocean freight and local clearances simply go into my Customs & Local Clearances account

2

When recording payment to customs, split the payment as follows:

You can see, the total is $646.21 which is what customs has received from you.

Now, to explain line by line this split-transaction:

  1. This line removes the GST Free purchase of equipment (you said you paid $6,709.36)
  2. This line is buying the equipment again with GST 10% ($7,108.31 is GST inclusive price customs has determined is subject to GST)
  3. Thanks to currency exchange rates, portion of your purchase remained basically GST Free as customs is not charging you GST on this amount, add it back with GST Free tax code.

The difference is exactly $646.21 which is exactly the amount paid to customs from your bank account.

3

Thanks a heap Lubos, I tried various methods as described but of course I was still left with the $247.26. It’s a great program with great support, especially for those of us who are techs or tradies. Thanks again

4