VAT on Import

While importing goods from outside the EU, you must declare these goods to the customs authorities of your state using customs import declarations.  The customs import declaration enables you to report all the required data about the goods being imported to the customs authorities and determine the customs duties.

Codejig ERP allows you to create, display, update, delete and send import customs declarations. You can create import declarations with or without reference to a purchase invoice or a goods and services receipt.
 
If you create the customs import declaration with reference to the specified purchase documents, items and their details are automatically retrieved from the referred document. Nevertheless, you can edit the detail provided if required.
If you create the customs import declaration without reference to any purchase documents, you have to add items and enter information about them manually. Such approach allows you to create one import declaration based on several purchase documents.
 
You can combine both strategies for adding items to customs import declarations. You can first specify a purchase invoice/ a goods and services receipt and retrieve items from it, and then manually add items from other purchase documents.
 
Note: If you decide to combine the two approaches, you have to adhere to the sequence of adding items described above. Otherwise, if you first add items manually, and then select a purchase document and retrieve items from it, the manually added items will be overwritten by the fetched ones.
 
When posted, the customs import declaration updates the transaction journal and influences the VAT and Inventory journal in the following way:
 
  • If your company is registered for VAT
  1. Each item’s inventory account is debited with the amount of customs duty and excise duty levied on a particular item.  
  2. The total amount of customs duty for all items is recorded as credit and debit entries to a selected account of duty. As a result, two entries cancel each other out.
  3. The total amount of excise duty for all items is recorded as credit and debit entries to a selected account of excise duty. As a result, two entries cancel each other out.
  4. An indicated account of custom office is credited with the total amount of customs duty and excise duty.
  5. A specified input VAT account is debited with VAT amounts grouped according to VAT rates (the sum of all VAT amounts charged on each item).
  6. The account of custom office is credited with the total amount of VAT.
 
  • If your company is not registered for VAT
  1. Each item’s inventory account is debited with the amount of customs duty, excise duty and VAT levied on a particular item.  
  2. The total amount of customs duty for all items is recorded as credit and debit entries to the account of duty. As a result, two entries cancel each other out.
  3. The total amount of excise duty for all items is recorded as credit and debit entries to the account of excise duty. As a result, two entries cancel each other out.
  4. The account of custom office is credited with the total amount of VAT.
 
You can submit the customs import declaration to the tax authorities in electronic form or as a printed document.   
 
To access the Customs Import Declaration
 
  1. On the Codejig ERP Main menu, click the VAT tab.
  2. Under the VAT tab, click Customs Import Declaration.
 
 
More information
Create a New VAT on Import Document
VAT on Import: General Area
VAT on Import: Goods Section