Accounting for GST on Imports

Prosaic does not currently include a dedicated GST on Imports tax type. Instead, GST paid on imports should be recorded directly against the GST account and then included as a manual Credit Adjustment in your GST return.

This approach ensures both your GST return and GST control account remain accurate.

Step 1: Reconcile or journal the payment

When recording GST paid on imports:

• Account: GST
• Tax Rate: No GST
• Amount: GST paid to Customs or through deferred GST accounting

For example:

The transaction will appear in the No GST section of the GST report.

Step 2: Enter a Credit Adjustment

When preparing your GST return, enter the GST paid on imports as a Credit Adjustment (Box 13).

For example:

Result

This treatment ensures:

• The GST control account reflects the GST paid.
• The GST amount is correctly claimed in the GST return.
• The transaction remains visible and traceable within the GST report.
• The GST return and general ledger remain in balance.

Example

A business pays $6,000 GST to Customs on imported goods.

1. Reconcile the $6,000 payment to the GST account using No GST.
2. Enter a $6,000 Credit Adjustment in Box 13 of the GST return.

The GST return will include the $6,000 GST credit, while the GST account accurately reflects the amount paid.