There are situations in a Import/Exports business where a lump sum amount of tax is charged and 100% of it needs to be paid to Customs, as well as being recorded in the books. In this example you are sent a bill from Customs as follows:
|Item||Tax||Amount inc Tax|
|GST on Imports||200.00||200.00|
Of the $255 a GST amount of $205 is to be captured. Enter in this invoice this invoice as follows but make sure you un-tick the ‘Amounts include GST’ box.
There are two line entries for GST. One offsets the other so that as a result we have captured $200 in the ‘Total GST’ section, and our totals are still correct.