This document suggests how you might cater for customs and duties in relation to imported goods. The assumption is that you have received invoices from both the supplier of the goods and the shipping agent or customs authority. Ignore all values and references to Duty if there is no Duty aspect on the invoice from the shipping agent.
Invoice 1 received from the supplier:
Value of good imported (Ex VAT) = €1,000.00
Invoice 2 received for 260.00 from shipping agent or customs authority:
VAT on goods (relating to Inv 1) = €200.00 (being 1,000.00 x 20%)
Duty = €50.00 (ex VAT)
So, total VAT = €210, which is calculated as €200.00 + €10.00 (being 50.00 x 20%)
1.1 Enter a Purchase Invoice for the purchase of the goods imported.
1.2 Select VAT Treatment as Goods from Supplier outside EU.
1.3 The line item should be for €1,000.00 and the VAT Rate must be set to No VAT.
2.1 Enter a Purchase Invoice for the Duty and VAT (Invoice 2 mentioned above).
2.2 Leave VAT Treatment as Goods or Services from IRISH Supplier.
2.3 The first line item amount should be for €1,000.00 (the amount charged for the goods by the original supplier), and the VAT Rate should be set to 20% Expense.
2.4 The second line item amount should be for -1,000.00 with a VAT Rate of No VAT. The Account selected in the line item should be the same 2.3 above.
2.5 The third line item represents the Duty and should be for €50.00 with the VAT Rate set to 20% Expense.
The overall Total on this invoice should be €260.00 (Duty €50.00 + €210 VAT).
If you create a VAT report, the €210.00 VAT should be shown in Box 4 and the €1,050.00 in Box 7 (being goods of €1,000.00 and duty ex VAT of €50.00).
This has been written specifically for organisations that are registered under the Standard VAT scheme. If you are registered in IRELAND under Flat Rate you will need to test this procedure before using it.
If you are registered on the Cash Basis, then the values will only reflect on your VAT Report after you pay Invoice 2, the customs/shipping invoice.