Setting up customs duty amounts for Sweden

When you create vouchers that include the customs duty for purchases, you have two options:

  • You can create a manual voucher for the duty amount on the A/P Vouchers and Adjustments form.
  • You can set up and allocate the estimated or actual customs duty amount through landed costs for purchase orders, GRNs, or transfer orders.

In either case, you must first set up special tax codes to use for the offsetting VAT on import..

  1. Set up special tax codes to use for the duty amounts:
    1. Use the Tax Codes form to set up Duty Import VAT and Duty Import VAT Exempt tax code(s). Assign a category if needed to group tax transactions on the VAT Report. Use the Reverse Charge or EU Purchase categories for offsetting entries.
    2. Use the Tax Line Numbers form to set up line numbers (boxes) for the tax codes as per your tax authority's requirements.
    3. Use the VAT Report to sort and group by categories or line numbers.

    For example, you could set up these tax codes:

    • Tax code= DT (Duty Import VAT), Type=Rate, Percentage=25%, Category=Reverse Charge.

      Select these options: Include Price, Include Discount, and Deductible.

      Specify the appropriate accounts in the Accounts and VAT Accounts tabs: A/R Tax Acct, A/R Tax Acct in Process, A/P Tax Acct, and Acquisition VAT Acct

    • Tax code=DTE (Duty Import VAT Exempt), Type=Exempt, Percentage=any number greater than zero, for example 25%, Category=Reverse Charge

      Clear these options: Include Price, Include Discount, and Deductible

  2. If you want to create a manual voucher for the duty amount on the A/P Vouchers and Adjustments form, see the help topic Creating Vouchers or Adjustments Manually, with these additional notes:
    • If necessary, create the relevant VAT entries for that voucher or create a new zero-amount voucher only for transacting VAT with another vendor.

      Example offsetting entries:

      • Line 1: Tax System=1; Tax Code=DT, Tax Code Exempt=DTE, Tax Basis=your customs value on which VAT will be calculated, Amount=your VAT amount.
      • Line 2: Tax System=1; Tax Code=DT, Tax Code Exempt=DTE, Tax Basis=your customs value on which VAT will be calculated, Amount=your negative VAT amount.

      The entries offset each other and the total amount VAT should be zero.

    • Post the vouchers in the journal.
    • Verify your journal entries.
    • Run the VAT Report to verify your VAT transactions.
  3. Alternatively, if you want to set up and allocate the estimated or actual customs duty amount through landed costs for purchase orders, GRNs, or transfer orders, follow these help topics, in order:
    • Setting Up Landed Costs:
      Note: In the Duty tab of the Landed Costs, specify the duty vendor. If duty is payable to customs authorities, set up the customs office as a vendor. If duty is payable to the customs agent, set up the customs agent as a vendor.
    • Allocating Landed Costs
    • Landed Cost Allocation Calculations
    • Manually Updating Allocated Amounts
    • Generating Landed Cost Vouchers. When you use the Generate Landed Cost Vouchers form to generate duty vouchers, be aware of this:
      • Specify the customs office or agent as the vendor.
      • To display only duty landed cost receipts, select only the Duty option.
      • Specify your customs declaration number or vendor (agent) invoice number in the Vendor Invoice field.
      • In the Duty field in the header, specify your actual duty amount.
      • Specify the Vendor Invoice date and G/L distribution dates or use defaults.
      • To add the tax amount manually, create a new tax transaction line in the Taxes tab.

        Select the tax code and enter the tax base amount.

        The tax base amount is usually the monetary customs value, and the amounts charged in the import declaration.

        You will be prompted to recalculate the tax. If you confirm the prompt, the tax amount is recalculated. You can manually override the amount calculated if necessary.

        To enter the offsetting entry, create a second line with the same tax amount and a negative value, so the total tax amount is zero and payment is required. With the example tax codes (above), you could set up these lines:

        • Line 1: Tax Code=DT, Taxable=DTE, Tax Basis=your customs value on which VAT will be calculated. In the Sales Tax field, VAT is calculated automatically.
        • Line 2: Tax Code=DT, Taxable=DTE, Tax Basis=your customs value on which VAT will be calculated. In the Sales Tax field, specify a negative value.

        On the Voucher Adjustment Distributions form, verify your distributions and enter your Acquisition VAT account in the Account field for the offsetting entry (the one with negative tax).

        The entries offset each other and the total amount VAT should be zero.

      • If the vendor for the VAT cannot be the same as the duty vendor, do not enter any tax information on the Taxes tab. Generate the landed cost voucher only for duty without any tax. Then in the A/P Vouchers and Adjustments form, manually create a zero-amount voucher for the required vendor. Manually enter distributions for the tax amount, including the offsetting entries. This way a zero-amount voucher is generated with the necessary VAT offsetting transactions.