I have face a similar situation to this when importing from the USA into the UK.
You pay the supplier for the goods, which are invoiced to you without any taxes.
However, when it arrives in the UK, the clearance agent who handles the import for you will charge for:-
- Clearance Charges - Basically the agent’s fee for doing the paper-work
- Any fixed ad-valorem or import taxes.
- The Value of VAT, which in the UK is 20% of the sum of the cost of the goods, import tax, and clearance costs.
Typically, I receive an invoice firstly from the supplier, then a further invoice from the clearance agent.
Handling the supplier invoice in Manager is simple - we all know how to do it.
Handling the clearance agent’s invoice is however more troublesome, because the VAT value does not represent 20% of the Net.
The way I have done it is:-
Enter the initial supplier invoice in the normal way, which does not involve any VAT
Then,on receipt of the clearance agent’s invoice and papers, make a journal entry, where the total gross value of the invoice is Credited to the Bank Account, and the VAT value Debited to the VAT/Tax account in Manager, and clearance costs and any other duties Debited to the relevant cost accounts.
I for one would be interested to hear any comments about alternative ways to handle this in Manager.