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Thread: Input Vat on Imports

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    Input Vat on Imports

    We are a registered VAT vendor, we have imported goods from China. A shipping company has delivered the stock to us, on the invoice is an amount for Customs Vat how do I go about claiming this? would it be handled as normal input, it's my first time handling the import side of accounting not 100% sure on the way to go about it, if anyone could help please.

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    Platinum Member Neville Bailey's Avatar
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    Hi Rene,

    What accounting system are you using?
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    Hi Neville,
    We are using Pastel.

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    Platinum Member Neville Bailey's Avatar
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    OK, then you need to use VAT type 06 on the customs VAT line item on the supplier invoice, and allocate the transaction to GL code 9990/000 (suspense account).

    VAT type 06 takes 100% of the transaction value (the customs VAT) to the VAT control account, as input tax. Even though you have used the suspense account, no value will be posted there, as 100% of the transaction will be treated as VAT.
    Neville Bailey - Pastel Accounting Consultant and Photographer
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    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    And this vat is then claimable? Customs vat on imports.... sorry just making sure that I have all my "ducks in a row" We have imported the goods for resale.

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    Platinum Member Neville Bailey's Avatar
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    Quote Originally Posted by Rene02 View Post
    And this vat is then claimable?
    Yes, it is.
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

    *** 20% DISCOUNT ON PASTEL XPRESS / PARTNER SOFTWARE UNTIL 15 DECEMBER 2017 ***

    "Give every person more in use value than you take from them in cash value."
    WALLACE WATTLES (1860-1911)

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    Thanks for all your help!

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