I am doing bookkeeping for my friend. He imported one thing from China for $150, also I have got DHL Duty/VAT Invoice for:
Customs Inport Duty 5.09euro,
Customs Import VAT 47.58euro and
2% surcharge 1.05euro.
How can I record it in the books?
You need to set up a nominal code in
cost of sales for Duty
(this will appear on the P&L)
Current liability for VAT at Point of entry
(this will appear on the balance sheet)
What is the surcharge for?
It is probably related to carriage so code it to freight in
You can claim vat at point of entry back on your VAT return.
You cannot claim the Duty or surcharge on your VAT return.