ATO reports on GST lodgments

Recent research by the Tax Office indicates that GST errors are made most frequently by small to medium businesses.

To assist taxpayers, the Tax Office has created a factsheet outlining how to avoid common errors that may occur when completing a business activity statement (BAS), accounting for GST and claiming GST credits.
Common GST errors include:

• Not reflecting the difference correctly when accounting on an accrual basis and lodging the BAS on a cash basis (vice versa);
• The BAS does not reconcile with accounting records or tax return;
• Leaving compulsory boxes unmarked even if it does not apply to you;
• Not keeping appropriate records for sales and purchases;
• Not locking the previous GST period; and
• Claiming full GST credits on purchases that are not for 100% business use.

Considerations to avoid GST errors include:

• Ensuring the GST codes are set up correctly for accounts;
• Checking that the tax invoices issued and received indicate GST;
• Using a registered BAS or Tax Agent;
• Being consistent with whether lodging GST annually or quarterly.

Lodging electronically may qualify for an extra 2 week lodgment extension.
 
For more information, click here.