Similarly to transportation expenses which are included within the cost price of a stock item, so are the import and other taxes you won\u2019t be able to get back from the state and \/ or tax authorities. As IAS 2 puts it: \u201cThe costs of purchase price of inventories comprise the purchase price, import duties and other taxes (other than those subsequently recoverable by the entity from the taxing authorities).\u201d\u00a0<\/p>\n
For an example you buy items from a country you\u2019re asked to pay import taxes on the purchase. Say you\u2019re buying 100 items of something with a unit price of 50 and the import taxes are in total 200. By using simple mathematics we can calculate the unit price. The total amount you\u2019ll pay for the items is 700 (calculation is as follows: 100 items multiplied with 50 that\u2019s the unit price and adding 200 that\u2019s the import tax).<\/em>\u00a0Now, as you bought 100 items, the price per unit you paid is thus 7 (calculation is as follows: 700 in total as the amount paid \/ payable divided by total units that\u2019s 100).<\/em>\u00a0On your balance sheet you show that you got inventory (debit entry) and the amount is thus shown as 700.<\/p>\n When selling those items, you expense them by the unit price that include the import tax since it\u2019s already accounted within the unit\u2019s cost price in the detailed stock ledger.<\/p>\n","protected":false},"excerpt":{"rendered":" Similarly to transportation expenses which are included within the cost price of a stock item, so are the import and other taxes you won\u2019t be able to get back from the state and \/ or tax authorities. As IAS 2 puts it: \u201cThe costs of purchase price of inventories comprise the purchase price, import duties […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-4958","post","type-post","status-publish","format-standard","hentry","category-1-3-inventory"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4958","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4958"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4958\/revisions"}],"predecessor-version":[{"id":4959,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4958\/revisions\/4959"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4958"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}