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       How to Key in Import GST at Customs in A2000ERP       
 

DESCRIPTION          How to enter payment on Import GST at Singapore Customs?

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1. STARTING POINT – MAKING A PURCHASE

When a purchase is made from a foreign supplier, please note that (a) the supplier is not a local company and is not a registered tax entity, and (b) they do not collect GST on behalf of the Singapore tax authorities. You should never pay Singapore GST to a foreign entity as they are not authorized to collect from you.

As such when entering a purchase order (SO) or supplier invoice (SI, SE etc) from these overseas vendors), the GST code to use is always NA_NR (NOT APPLICABLE).

For IMPORTS, all GST are usually collected at point of Customs clearance, and the following illustrates how the tax transaction is handled. 

2. EXAMPLE OF CARGO CLEARANCE PERMIT

Here is an example of an custom permit, where the Purchase Amount $ 8,149.01 and Customs collected GST Amount of $ 570.43

Import Clearance Permit Details:

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2. HOW TO KEY IN ABOVE TRANSACTION IN THE SYSTEM?

Step 1 ENTRY METHOD – PURCHASES ENTERED IN PURCHASE MODULE

We assumed that the purchase of the items worth $8149.01 was already taken up in an earlier Purchase Transactions (like SE, SI, SA etc.). The GST Type in that purchase transaction was selected as NA_NR (Not Applicable).

Step 2 PAYMENT TO IRAS FOR GST – use a GC transaction as follows. 

This transaction illustrates the Import GST that was paid at Singapore Customs via GIRO.

In the above entry screen, the payable amount is $ 570.43 which is pertaining to the GST amount paid to Singapore Customs.

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3.  RESULT OF ENTRY

Here is the result of the above entry in GL.

Here is the result of the entry in GST F5 Grouping Details report.

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4.  WHAT IF EXCHANGE RATE DIFFERS INTERNALLY & IRAS?

IT ALWAY HAPPEN! As seen in the above example, the SI/SE was transacted at USD 6,035 @1.35 exchange-rate, the SGD equivalent would have been SGD 8,147.35. 

However, Singapore Custom may assess the exchange rate on the date the cargo cleared, at rate of 1.3503. In this case, USD 6,035 x 1.3503 applies and $8,149.01was the final amount applied as the import value to compute GST.

NOTE: All tax rates have to follow what is the official Govt exchange rate, regardless what the source of your internal rates are.

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5. CAN WE USE OTHER ZERO-RATED TAX CODE FOR THIS?

NO, you cannot do so. The other option for Purchase Zero-rated (ZP) type is for use with a GST registered supplier (which your foreign supplier is not). The type ZP is used primarily for zero-rated purchases like purchase of air tickets, international freight charges and international call charges etc.

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6.  WHY IS ABOVE METHOD USED?

We enter in this manner as (a) import of goods (transacted at Purchase module) and (b) the process of payment to Singapore Custom for GST are always 2 separate processes. With this method, the Import GST will be properly captured in the GST F5 and GST Grouping Details, even though it is flagged as NA_NR in the purchase transaction.

Above method was approved by IRAS during our presentation to demonstrate how A2000ERP handles “Import GST paid at Singapore Customs”.

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