Any way to include GST into profit and loss items?

#1

We run a charity and we need to report to sponsors on the utilisation of the monies that we receive.

E.g. we receive USD100,000 (GST-exempt), and we’ve used USD70,000(GST-incurred) to build homes for the underprivileged. and we show remaining USD30,000 that can be carried forward to other projects.

My question: Is there a way to show Profit & Loss items inclusive of GST so that my sponsor knows exactly how much cash is left?

#2

You cannot show a Profit & Loss statement including GST because the GST portion of the expense will be claimed back. I suggest you try a Cash Summary if the sponsors are mainly interested in reviewing the Inflow & Disbursement of funds.

#3

Thanks Tony for the insight. I was skeptical and unsure if we would really get a refund from the government if we have net input tax, as Malaysia had just implemented GST last year, and we’re still learning.

I’ll look into that then. Thanks again!