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Avoid These GST Mistakes Part 2 – 6 more

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Continuing our tips on common mistakes in Aust Business GST reporting. Incorrectly classifying your expenditure or revenue for GST, may be exposing you to future penalties and interest charges from the ATO. Other areas are:

  1. Entertainment expenses where the business is under FBT reporting and has elected to use the 50/50 split method for fringe benefits tax purposes. Only 50% of the GST credits can be claimed in this situation
  2. Government fees where no GST has been charged, are be coded FRE. Examples include land tax, council rates, water rates, ASIC filing fees and motor vehicle registration
  3. Government grants and incentives which are received can be inclusive of GST
  4. Interest income should have ITS (Input Taxed Sale) as the code
  5. Motor vehicle purchases claiming the entire GST credits on a car purchased for more than the luxury car limit (eg $57,180 GST inclusive for the 2008/09 year). The maximum GST credit that can be claimed is limited to $5,198
  6. No valid tax invoice at the time of lodging the BAS. Businesses in this situation should contact the ATO for permission to claim the GST credit
For more, click on           “Avoid These GST Mistakes”      at     http://www.accountkeepingplus.com.au/free-how-to
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Author: accountkeepingplus

Administration, bookkeeping and compliance for small business, Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, free support MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

One thought on “Avoid These GST Mistakes Part 2 – 6 more

  1. Great web site. Plenty of helpful info here.

    I am sending it to a few friends ans also sharing in delicious.

    And certainly, thanks to your sweat!

    Like

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