Import of Goods

Import of Goods

Import Of Goods

Recording an Import of Goods is more or less the same as recording any other purchase

Different Types Of Import

There are three types of Imports

1. Regular Imports
2. Imports under a special Scheme
3. Imports under the Import GST Deferment Scheme

Let Me Now Briefly Explain What These Mean

Generally, in the absence of any special import relief, all goods imported into Singapore are subject to import GST at the prevailing standard rate (currently 7%). Import GST is calculated based on the import value which includes cost, insurance, freight and customs duty. These are Regular Imports.

The Major Exporter Scheme (“MES”) and the Approved Third Party Logistics (“3PL”) Company Scheme are schemes that allow for import GST to be suspended on nondutiable goods imported into Singapore. Goods imported under these schemes must be categorised separately from normal imports to enable businesses to distinguish between those imports where import GST is suspended and those imports where GST is paid.

Under the Import GST Deferment Scheme, an approved GST-registered business can defer the payment of import GST until it files its monthly GST returns. The business is required to account for the deferred import GST in the monthly GST return and claim the same amount as input tax (subject to the conditions for claiming input tax) in the same GST return

Let Us Now See How To Record An Import Transaction Using Reach Accounting Software

1.Click on Expense in the top tab menu and choose Bill

2.Click on Add Bill

3.The first tab will prompt you to choose the type of Invoice you choose to raise; Choose Import of Goods
4.The Bill entry is divided into three sections

• The first section allows you to fill the basic Supplier Invoice details like date, supplier reference, currency and due date, Make sure you Choose the type of Import. Carefully.
• The second section allows you to choose the products, description, quantity and value of the purchase along with taxes
• The final section allows you to attach the bill copy and set reminders for payment followup

5.Fill the details appropriately from the Supplier Invoice
6.Once done, you have to option to save it

7.On saving the Invoice Reach Software will automatically record the supplier bill

8.The daybook, ledgers, trial balances and financial statements are automatically posted and prepared

9.The GST payable on reverse charge ledger is automatically updated

10.It will also auto-populate the relevant tax codes in the GST forms so you will not have to prepare them manually later