BAS report doesn't show Purchases without GST

Hi,

I have a few purchased from overseas do not have GST. In the purchases Invoice, I didn’t include GST, those transactions didn’t show on Tax Transactions report as well.

However, it shows $0 in “Purchases without GST in the price” in the BAS report.

How can I fix this issue?

In Tax Transactions Report… Name It Self Justify that its only Display the Tax Transactions. If you do not enter any tax code or Leave it blank then It can not be displayed in Tax Transactions.
If you want to Display the 0% or No Tax Items also in that, then Make one Custom Tax Code With the Heading of No GST or 0% Tax. And then at the time of Purchase Invoice or Sales Invoice, Just include that tax code so there are no effect on the Amount of Sales or purchase invoice because of No TAX or 0% Tax… But It will displayed in the Tax Transaction.
Hope you understand the Things Described.

@ed2016
Statement 1 : I have a few purchased from overseas which do have GST.
Statement 2 : I didn’t include GST.

Why didn’t you include the GST when processing the overseas purchase invoice ?

The guide on accounting for GST on goods imported to Australia should be referred to - https://www.manager.io/guides/account-for-gst-on-goods-imported-to-australia/8960

apologies for typing error. It should be “purchased from overseas do not have GST” not “purchased from overseas do have GST”

Did you allocate this tax code to those transactions ?

Thanks for responding to my issue.

Any purchases have GST, I have added GST 10% in the Tax coloumn.

This is what I have done a purchase without GST. I purchased a software license from US company on 11 Jun 2017, the transaction without TAX

I set exchange rate on setup, exchange on 11 June 2017.

Go to Summary, Tax payable, the $300.8 doesn’t show, that is right.

Go to Reports, Tax Transactions, the $300.8 also doesn’t show.

However, go to Reports, GST Calculation Worksheet for BAS, I expected the $300.8 transcation show on the G14, but it shows $0

You haven’t followed my previous post:
Did you allocate this tax code “Australia - GST Free” to those transactions ?
In your screenshot for the USD transaction you show the Tax as “No Tax”, it should be “Australia - GST Free”.

If you did not pay GST on the purchase, here is what to do:

Go to Settings / Tax Codes and create a new in-built code. Choose "Australia - GST Free



Create the Purchase Invoice and choose the Australia -GST Free tax



Now the purchase will appear in the BAS G14


The amount will be converted to Australian 398.

(expletives removed)*

Does that mean that:

GST Free and a no entry for GSt get reported differently on the BAS worksheet?

Admittedly, I don’t attach any tax code (free or otherwise) unless I KNOW I am applying the correct tax code.

However, I did think that for reporting purposes that GST FREE and (no tax entry) were considered one and the same. At least I discovered this now, a few weeks before the appointment with my accountant.

edit: *jovial in nature (just in case someone confuses me with an evangelical something-or-other… I’m really not lol)

Yes, in the case of the Australian GST Free, because the in-built Australian tax codes are designed to match Australian law and the BAS worksheet. That’s why there is the special Guide @tony linked to.

For most other countries, there is no in-built 0% tax code because if something is exempt, you simply don’t apply a code. However, there are special cases, such as the Netherlands, where 0% codes are included because of reporting requirements tied to EU rules (meaning that items are not excluded from the taxation scheme, but are taxed at a 0% rate, based on origin and destination.)

@Tut, I don’t live in Australia, so just to satisfy my curiosity:

Using the Australian - GST Free tax code also puts the amount in line G10 of the BAS, which is for Capital Purchases. I see no way to have the amount listed as Non-capital purchases (G11).

Is this because only capital purchases can be GST free in Australia?

And a follow-up: I guess software like ed2016 imported can be considered a capital purchase, but what happens if a business imports something that is non-capital? Or should it not happen that a business imports non-capital goods and doesn’t get charged GST as described in the guide that @tony linked to?

Sorry, @dcVest, but I can’t answer your questions. I’m not Australian either. I’ve never used the BAS worksheet. I only know it and the in-built Australian tax codes are designed to work together. (That’s the result of the developer being in Australia: customized reports for that country.) @tony will know the answers to your questions.

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Thanks anyway @Tut. Curiosity is going to kill this cat!

The GST Free in-built Australian tax code is linked to the GST calculation worksheet but if you do not make an entry for GST it will not show on the GST calculation worksheet. It will show on the Tax Audit report instead.

From 1st July the ATO has introduced a Simpler BAS for small businesses with a GST turnover of less than $10 million, see - https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Goods-and-services-tax-(GST)/Simpler-BAS/

The new Indian GST law requires a NIL tax code too. This is to be mentioned along with other tax codes while filing monthly tax returns.

Without testing but I am assuming G10 if you use a BS COA and G11 if you use a P&L COA.
Manager is that intuitive.

Yes - but most users don’t make the distinction as the result/impact is the same from a GST perspective, but from a technical / data collection point the distinction should be made.

No, if you buy a first aid kit from the supermarket it is sold with GST included, but if you buy the same first aid kit from St Johns (a GST exempt charity) it is sold GST Free, it is not sold as “no tax”.

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If you are required to specifically show a 0% code having been applied, you can create this as a custom tax code. Since there are no Indian tax worksheets, this will function identically to an in-built 0% tax code, showing up on tax reports, etc.

You are right. There is always more to learn!