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)
How would I best manage this data?
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%
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?
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.