cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

Duties, Tarrif's and import taxes

What account would you record Duties and tarrif's in Quickbooks? Would that be considered an expense?

4 Comments 4
Highlighted
Level 15

Duties, Tarrif's and import taxes

If you pay it, then yes it is an expense

If you pay it as part of getting inventory on hand to sell, then it is part of the cost of the inventory purchased

Highlighted
Level 2

Duties, Tarrif's and import taxes

This was duty and taxes paid on merchandise That will be added into inventory for resell in the United States so based upon your answer, I should record it under cost of good sold correct?

Highlighted
QuickBooks Team

Duties, Tarrif's and import taxes

I'd like to jump in to this thread, roseroscoe44.

 

Based on our allstar's @Rustler answer, yes. You'll have to add it to your inventory purchase's cost and in your COGS account.

 

Please refer to this article for more information about changing the account for a product/service item.

 

I've also this article about income and expense for your additional resources.

 

If you have questions about QuickBooks, please let us know. We're always here to help. Have a wonderful day.

Highlighted
Level 15

Duties, Tarrif's and import taxes


@roseroscoe44 wrote:

This was duty and taxes paid on merchandise That will be added into inventory for resell in the United States so based upon your answer, I should record it under cost of good sold correct?


inventory, if you are using inventory items in QB, is an asset, the cost of the item does not become COGS until it is sold.  COGS = Cost of Goods Sold

 

@ShiellaGraceA 

yes. You'll have to add it to your inventory purchase's cost and in your COGS account.
NO, see my answer to the OP

 

Please refer to this article for more information about changing the account for a product/service item.
NEVER change an item type, doing so changes the history of the financial transactions, even though intuit allows it, do not do it, make the old item inactive and create the item type you need

 

Need to get in touch?

Contact us