Rules for correcting GST errors

The Tax Office offers a guide on how to correct GST errors made on earlier activity statements on a later activity statement provided certain conditions are met.

 

A GST error is a mistake made in working out the net GST amount when you report too much GST or report too little GST.

 

Errors made in relation to fuel tax credits, wine equalisation tax or luxury car tax are not considered to be GST errors.

 

To correct GST errors which resulted in you paying too much, all of the following conditions must be satisfied:

• The correction is made within the 4 year time limit;
• It is not subject to a compliance activity; and
• It has not already been corrected in another reporting period.

 

To correct GST errors which resulted in you paying too little, all of the following conditions must be satisfied:

• It is not subject to a compliance activity;
• It has not already been corrected in another reporting period;
• The error was not a result of recklessness or intentional disregard of a GST law;
• The correction is made within the period that is determined by your GST turnover, which is either 12 or 18 months; and
• The net sum of the error is within the taxpayer’s error value limit.

Click here to access the guide.