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Thread: VAT imports and customs duties / overseas expenses

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    VAT imports and customs duties / overseas expenses

    Hi all!!

    I really need some help here. It is the first time that I am working with imports etc. I have a SAD500 which shows the VAT paid as well as the custom duties. Now, I processed the VAT amount, but I am not sure what to do with the customs duties entry. Then, on 5 April 2012, Neville said that a VAT type 06 must be used in the Supplier invoice. However, when I create a supplier for this transaction, the VAT section does not give me an option for type 06. Can I also do the transaction with a journal?

    Second problem, whilst buying the machines imported, the expenses regarding that like accommodation, vehicle rental, fuel etc. How do I handle that? All monies used was provided by the Director himself.

    Please help as I am sooooooooooo not getting anywhere with this.

    Thanks!

    Alida

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    Bronze Member Miro Bagrov's Avatar
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    Hi,
    Sorry I struggle to understand which system you are using. VAT type 06 sounds like a custom option on the accounting software.

    Concerning the Machines imported. If the machines are bought for trading, they represent inventory. The transport costs represents Cost of Sales. The accommodation of staff is just an admin expense.
    If the imported machines are just used in production they fall under PPE, long term assets.

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    Platinum Member Neville Bailey's Avatar
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    Hi Alida, sorry I have only now stumbled across your post.

    Can you drop me an email with your contact details and I will give you a call in the morning?

    I assume you are using Pastel Xpress or Pastel Partner?
    Neville Bailey - Pastel Accounting Consultant and Photographer
    neville@accountingsoftwaresupport.co.za
    www.accountingsoftwaresupport.co.za
    View Neville Bailey Photography

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

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    Quote Originally Posted by AlidaN View Post

    Second problem, whilst buying the machines imported, the expenses regarding that like accommodation, vehicle rental, fuel etc. How do I handle that? All monies used was provided by the Director himself.
    I assume the machinery is capital in nature? If so then the costs mentioned should be capitalised as part of the cost of the machine. All costs incurred up to when the machine is commissioned are part of it's cost.
    If they were funded by the director / shareholder, then credit his loan account.

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    Miro,

    Thank you very much for clarifying that part of my problem, sometimes a new pair of eyes can help you see that the answer was actually there all the time. Really appreciate the time you took!

    PS: I use Pastel Xpress V11.

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    Clive,

    Thanks a million for your time!

    Enjoy the day!

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    Neville,

    I have send you an email and are looking forward to talking to you!

    Regards

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