Until I get my hands on a software on which I can best manage my Venezuelan company’s taxes, I’m going to have to use Quickbooks to try to manage our finances; as the Venezuelan tax code has specific particularities I’m having problem modeling the following processes. Please note that I’m not in any way an accountant or presume to be an expert on this; I’m just trying to find a solution for these. The basic problems are the following
– Customs Duties (Impuestos de Nacionalización): I have added this as Cost of Goods Sold
– Customs Sales Tax (Impuestos pagados al Agente Aduanal): I have put
– Retenciones de Impuestos
– Custom Duties:
As we are a import business, everytime we import anything we need to pay taxes through our Customs Broker, for example if the merchandise cost is 10.000 USD we need to pay (depending of its tariff code), between 10-15% of tax (1000-1500 USD). Additional to this we need to pay the Sales Tax (12% as per Today Sept 4th 2012) and some minor taxes.
So on this sense, we pay the sum of all this taxes and duties to our customs broker and they pay the government entity; its important to note that Import Duties is a Cost of Good Sold (an we will never see this money again), but the Sales Tax we pay will then be deducted from the total tax we owe when we issue the invoice to our end customer.
To model this I have created an COGS Account named “Impuestos de Nacionalización”, and an Other Current Liability Account name “IVA Nacionalización” (At first it did not make sense to me to create “IVA Nacionalización” but only to use the regular “Sales Tax Account”, but Quickbooks would not allow me to do this, so I did this on two steps.