Australia: Default GST Tax Code: Out of scope (0%)

[ovari]

Manager’s default Tax Codes for supplies are:
GST 10%
GST on Imports
GST Free
GST Free Exports
Input Taxed

Should another tax code be added to the default, being:
Out of Scope

What do you think?

Thank you

Out of scope supplies

https://services.anu.edu.au/financial-management/taxation/out-of-scope-supplies

Key Requirements:

• Supplier must not charge GST on income when it makes this type of supply;
• Supplier can claim back GST when it purchases things to make this supply;
• Must not be a taxable, input taxed or GST-free supply.

Examples:

• Gifts/donations (refer GST & Gifts/Donations for further information)
• Appropriations (i.e. Certain types of government funding transactions - refer GST & Appropriations for further information);
• Services provided by an employee;
• Internal transactions (refer GST & Internal charging).

Easy GST and BAS with QuickBooks Online

GST Tracking and Lodge BAS Online | QuickBooks Australia

[sam]

It seems to me they fall under the category of GST free.

[ovari]

Do the links below indicate that “Out of scope” and “GST-free” are different?

• Australian National University https://services.anu.edu.au/financial-management/taxation/out-of-scope-supplies

Is “GST-free” listed on the BAS, while “Out of scope” is not?

Thank you

[AJD]

Out of Scope is the same as Not Reportable/No Tax. Some accounting databases also refer to it as Not on BAS.
See here: https://www.ato.gov.au/business/business-activity-statements-(bas)/in-detail/simpler-bas-gst-bookkeeping-guide/

Scroll down to section headed Table 7: Items not reported on the BAS for GST purposes.

The equivalent code in Manager is No Tax