MoneyWorks version 6.0.3 is available for download, please check your software updates from the help menu.
For Singapore user, version 6.0.3 added a new GST tax code ‘IM’. ‘IM’ GST code is set as 0% rate. ‘IM’ code is to be use together with ‘A’ code.
How to use these GST code?
You imported goods from an overseas Supplier, ABC Co, Bill amount US$10,000.00. At Custom or sometime was paid on behalf by the forwarder, GST will be charged for the goods imported.
Assume: the exchange rate used by the Custom was US$1 : S$1.35.
In MoneyWorks, you recorded the Bill from ABC Co as US$10,000.00, ABC Co was not a GST register company but the goods you bought from them were GST taxable (GST on Imports), so in this case, ‘IM’ code will be used in the bill. Since ‘IM’ code was set as 0%, there will not have any GST amount but US$10,000 will show in the GST report as a taxable purchase.
‘A’ code will be used in the cheque payment to Custom (or bill from forwarder) for the GST paid (S$945.00) for this imported goods. ‘A’ code by default was set as All Tax, the amount recorded in the payment or purchase invoice (bill) will be 100% go into GST Paid account (Input tax, Current Assets account).
Using two GST Code is better and easier to manage imported goods as there is more than one supplier (accounts payable) involved.
Please check with IRAS web site for more details on GST on Imported Goods.