VAT paid to authorities

1

Hello, I don’t know if someone talked about this before, I think I read something similar but I couldn’t find it when I came back to search.

We import goods from another country and pay for them on the day of purchase, after few weeks they arrive at the airport and that’s when we have to pay the VAT to the Tax authorities.

So, my question is: How can I assign the correct VAT amounts to each item of the goods imported? as I have to add it to the cost of each inventory item.

In the guides it says I have to make a payment with the VAT amounts when paid to authorities but when I do it that way it comes as one amount and can’t be assigned to inventory items.

2

You charge to the item but don’t add QTY if you want charge the cost to item

3

Thank you for replying.
I did create a payment with inventory items and their VAT assigned to them, but it didn’t affect the cost of each item as I thought it must increase it.

I also did some research and found that VAT is not included in the COGS since it’s recoverable from the taxing authorities, is that the situation here?

4

If VAT is claimable then it shouldn’t be charged to the cost.

5

Great, I think I got it. Thank you for your help.