How to handle VAT / Sales Tax with Advanced Purchase Orders
I have a question regarding how best to record Sales Tax on imports in Dear.
My business imports alcoholic beverages from EU to China, so we used the Advanced Purchase Order function to issue Purchase Orders. Once POs are approved, we arrange collection and freight to China. Once the products arrive, they incur import duty, excise tax & sales tax (VAT). We add these to each PO using the Expense function in Dear.
My question is whether we should be expensing Sales Tax as well to the Purchase Order? I noticed that in the Dear Sales reports sales numbers are net of Sales Tax. Does this mean that we should not be including input Sales Tax for landed costs on our Purchase Orders?
Thanks for any input and advice!