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Intuit
14 helpful votes

100% GST - Importing goods

When a business imports goods from overseas, often the imported goods are paid for direct to the overseas company and no GST is liable on that payment but the freight company pays the GST when they pay the import taxes and duties.

This causes a situation where the business has to record the GST, taxes, and insurance to a different entity than the payment of the goods.

Two entries are required.

  1. Payment of the Goods to the supplier.

Create a supplier payment for the goods without GST.

  1. Payment of GST, Taxes, and insurance.

Create a supplier payment with the Transactions as follows.

Goods
GST
1100.00
Goods
GST Free
-1100.00
Insurance
GST Free
10.00
Tax
GST Free
10.00
Total
20.00

This causes the total amount on the invoice to equal the GST of the product plus the insurance and taxes.

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