Recording overseas purchases as expense

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Business
104 Points Posted on 05 September 2021

I have purchased a lifetime license of a particular software at a one-time payment of $170 from a Malaysian website. Can I record this purchase as an expense so that we do not need to pay GST under the reverse charge mechanism?

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On 05 September 2021 at 22:58 Report
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This discussion explores how to account for a lifetime software license purchased from overseas. The key question is whether this one-time payment can be treated as a business expense, potentially avoiding GST under the reverse charge mechanism. However, the consensus leans towards capitalising it as an intangible asset, requiring a different accounting treatment.

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Practising CA
8954 Points Posted on 06 September 2021
It seems like purchase of Intangible asset. hence would require it to be capitalized
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On 06 September 2021 at 00:45
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Chartered Accountant
24588 Points Posted on 06 September 2021
It should be capitalised as it is an intangible asset
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On 06 September 2021 at 06:11

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