Import Taxes & Fees

1

Hi,

I recently imported some goods from France into Australia and I’m trying to find the right way of documenting the import taxes and fees. I know there are numerous threads about this but I thought I might outline what I’m dealing with and ask which would be the most relevant thread to follow.

I paid up front for the goods which I have entered as GST free, then I paid for the freight which had GST on it. No issues with that part.

The tax invoice which I paid to DHL consisted of the following:
GST on importation $566.83
Australian Govt Charges $88.00 (GST FREE)
DHL Disbursement Fee $22.00 (incl. $2.00 GST)
Total $676.83

How would I best manage this data?

Thanks

2

You can account for the three amounts as follows:

  • Allocate the $566.83 to the applicable Purchases Imported expense account but select the tax code - GST on Imports.

  • Allocate the $88 to the applicable Customs Charges expense account and select the tax code - GST Free.

  • Allocate the DHL fee to Freight Charges and select the tax code - GST 10%

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3

Thanks Tony, sorry if this sounds like a silly question but is there any value in breaking it into two payments with the $22 Disbursement Fee being paid to DHL and the balance being paid to the ATO or should it all be in one to DHL?

4

This should all be one payment to DHL. You made no payment directly to ATO. The allocations to appropriate accounts occur on the individual line items.

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