How to Handle VAT on Imported Goods

VAT on imported goods is handled differently from VAT on local purchases. Here is the difference.

Local purchases

You pay 15% VAT to the supplier. You claim it back as input VAT on your VAT return.

Imported goods

VAT is payable at the point of importation. You pay it to MRA Customs. You can still claim it back as input VAT.

How to record in your EBS

1. Create a purchase invoice from the supplier
2. Create a separate journal entry for the VAT paid at customs
3. Both are recorded as input VAT on your VAT return