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Dan188
January 26, 2020
Question

inputting HST on imported goods

  • January 26, 2020
  • 17 replies
  • 23 views

I often have items coming into Canada that are not charged. But customs charges HST on the declared value. These could be warranty parts, items for service or returning items.

I am not charged, but HST is charged by customs. How do I input these into Quickbooks so it shows up as HST paid/payable?

 

 

17 replies

LauraAB
Level 8
January 27, 2020

Hello Dan188,

 

It sounds to me like you're trying to record a sales tax only transaction. I know that imported goods sometimes fall under these circumstances where they're charged the sales tax amount only at the border and it can be tricky to figure out how to record it when you're not sure. Don't worry, I'll show you how.

 

  1. Select Enter Bills from the Home window.
  2. Make sure the Expenses tab is selected.
  3. Choose an expense account related to imported goods from the Accounts drop-down.
  4. Enter 0.01 in the Amount column.
  5. Select the tax code that represents all taxes paid. (In this case, you'll want an HST code.)
  6. On a second line, choose the same account as before from the Accounts drop-down.
  7. Enter -0.01 in the Amount column.
  8. Select the same tax code again.
  9. Edit the amount in the sales tax field to match the sales tax charged at customs.
  10. Select Save & Close to save the transaction.

Give it a shot! Note that you'll have to create a vendor for customs in order to be able to save the transaction, but you should be good to go with this formula. Make sure to go to the Pay Bills feature to complete the recording of this expense payment as well.

 

I'm here if you have further questions. Have a great day!

MGElement
April 11, 2022

Thank you for this detailed steps please if you don't mind I'm in the same situation I got a an asset from China and DHL sent me a bill I paid it using Credit Card.

I followed your steps but I'm stuck at this "Choose an expense account related to imported goods from the Accounts drop-down."

I do not know what account you mean by this? which one I should be selecting...

Should it be fine if I add these in the ITEMS tab of the BILL window? although the amount matches the bill but I do not know which account would be affected.

 

Please Help me and check the photos attached.

 

 

Thank you! 

 

Trish_TQuickBooks Team
QuickBooks Team
April 11, 2022

Hi MGElement, 

 

Thanks for reaching out here.  It's great to see all of the wonderful guidance posted in this thread to assist with inputting HST on imported goods.  To ensure you're recording the transaction to the correct account, I suggest speaking with your accountant.  If you don't have one, we can help you locate a ProAdvisor in your local area.

 

Feel free to ask other questions.  We'd be glad to assist!

    LeithG
    LeithG
    Level 2
    March 19, 2021

    Hi Dan

     

    I generally enter these as a journal entry; debit directly the HST payable account and specify line 106 for an input tax credit, and credit either cash or accounts payable as applicable (being sure to specify the supplier eg Canada Customs, FedEx, whoever).

     

     

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