When you receive a Customs invoice for imported goods, the charge is usually split into:
- Import fees — the duty or fee portion, which is GST exempt.
- GST portion — the 100% GST amount on the import, which must be coded using the Customs GST rate so it can be claimed in full on your GST Return.
Coding both portions to a single standard-expense GL account, or treating the Customs supplier as International Supplier (GST Exempt), prevents the 100% GST amount from appearing correctly as a credit adjustment on your GST Return.
Prerequisites
Before you start, confirm that:
- Your organisation uses New Zealand GST Returns in Infusion.
- You have permission to maintain the chart of accounts, supplier records, and supplier invoices.
- You know which supplier record represents your Customs authority (for example, NZ Customs).
Set Up the Customs GST GL Account
Create or edit a GL account to hold the 100% GST portion of Customs invoices:
- Select Financials > Chart of Accounts.
- Open an existing GL account or select +Add to create a new one.
- Enter a clear Name, such as Customs GST 100%.
- Set Function to an appropriate liability function, such as Current Liability - Transaction.
- Set Default GST rate to the Customs rate at 100% (shown in the drop-down as Customs GST 100% or similar, depending on your GST rate names).
- Select Save.
The Customs GST rate is a fixed system rate used for imported-goods GST. It is separate from Standard, Exempt, and Zero Rated rates.
Add the GL Account to Your Balance Sheet Layout
Include the new GL account in the GST liability section of your Balance Sheet layout so reporting and year-end processing stay correct:
- From Financials > Chart of Accounts, select Layout on the toolbar.
- Open your Balance Sheet layout.
- Under Liabilities, locate the GST group (your layout may use a customised group name such as GST Due).
- Drag the Customs GST 100% GL account into that group, alongside your other GST liability accounts such as GST on Income and Less GST on Expenses.
- Select Save.
If a GL account is not placed in a Balance Sheet or Profit and Loss group, Infusion warns that the account may need to be moved before you can rely on layout-based reporting.
Configure the Customs Supplier
The Customs supplier must not be treated as an international supplier. If International Supplier (GST Exempt) is turned on, Infusion applies exempt GST treatment to that supplier’s invoices and the 100% GST portion will not code correctly.
- Select Suppliers and open your Customs supplier (for example, NZ Customs).
- Open the Terms tab.
- Untick International Supplier (GST Exempt) if it is selected.
- Select Save.
Create a Recurring Supplier Invoice Template (Recommended)
A Recurring Supplier Invoice saves time when Customs invoices follow the same coding each month:
- Select Suppliers > Invoices.
- Select Recurring Supplier Invoice on the toolbar.
- Choose your Customs supplier.
- Set Recurs every to 1 Month(s).
- Leave # of occurrences after this blank if you want the template to continue until you stop it manually.
- Select Save.
You can also create a normal supplier invoice and convert it to recurring later using More Options > Convert to Recurring Supplier Invoice.
Code the Supplier Invoice Lines
Add two GL Account lines to the invoice:
-
Import fees line
- Select GL Account on the lines toolbar.
- Choose a GL account with Default GST rate set to Exempt.
- Enter the import fee or duty amount shown on the Customs invoice.
- Use a description such as Import Fees.
-
GST portion line
- Add another GL Account line.
- Choose your Customs GST 100% GL account.
- Confirm the line uses the Customs GST rate at 100%.
- Enter the GST amount shown on the Customs invoice.
- Use a description such as GST Portion.
Check the invoice header shows the expected GST policy for a non-international supplier, and that the line GST rates are Exempt on the import fee line and Customs 100% on the GST line.
Amounts on the invoice should match the figures on the Customs document. Adjust line descriptions as needed for your own reporting, but keep the GST rate coding on each line as described above.
Post the Supplier Invoice
When the lines are correct:
- Select Post on the supplier invoice.
- Confirm the posting summary, then complete the post.
After posting, you have a Recurring Supplier Invoice template ready for the next Customs cycle. When the next occurrence is due, open the recurring invoice, update the amounts from the new Customs document, and post again.
Check the GST Return
The 100% GST portion flows to your open GST Return as a credit adjustment:
- Select Financials > GST Returns.
- Open the GST Return for the relevant taxable period.
- Open the Summary tab.
- Under Purchases and expenses, review GST credit adjustments.
The Customs GST amount appears in GST credit adjustments and is included in Total credit adjustments (Box 13). This allows the 100% GST on imported goods to be claimed in full, subject to your usual GST registration and filing rules.
When setup is correct, the import fee remains exempt and the Customs GST amount is available to claim through GST credit adjustments on the Summary tab of your GST Return.
