GST record keeping on imported goods
Diyor
Member Posts: 4
Hello. My name is Diyor and I'm new to business accounting. I imported goods and received an invoice from customs broker including GST for the goods purchased. In order to record it properly, should I create entries that reflect separately the services of a customs broker and GST and GST for Goods as a separate entry? Please kindly advise what would be the best option. Thank you in advance.
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Hey @Diyor, that's a great question! I think for the most part, being as thorough as you can be in accounting (barring making it too complicated) is never a bad thing. Especially if down the line you want to view the two separately, then I think creating the two would be best. In most cases, GST is a non-recoverable tax, so having two separate GST categories likely won't impact your tax reporting, but it could give you insight into how much GST you are paying towards vendors versus how much you are receiving and then remitting to a tax authority for goods you have sold.
In the settings you can create multiple Sales TAX (GST) values. So when you enter in a value you can either enter it as including or excluding GST and depending on which GST Code you use, you then select whether it is recoverable or not and the total value is shown on reports. Here is a link to an article which explains the difference... https://support.waveapps.com/hc/en-us/articles/208623426
Thank you for your inputs. Best regards. Diyor