The tax office has issued a list of the most common errors it sees when businesses are reporting their GST, in a bid to streamline the process for business leaders.
According to the ATO, the most common GST reporting errors are:
- Transposition and calculation errors
- Not having tax invoices not having records (i.e. tax invoices) in order to claim GST credits. Invoices are required as proof of all business purchases that cost more than $82.50 (inclusive of GST).
- Not knowing what is actually GST applicable Not all suppliers charge GST. See more here
- Accounting system errors The set-up of your accounting system is critical to getting your BAS right.
- Not correcting identified mistakes After reviewing your GST transactions, you may discover an error or discrepancy with your reported GST. If this occurs, the tax office encourages you to correct it.