Ah ha. I have attached a screen shot of a bank charge of how it should be!? So, I need the GST drop down box applied (as I have been) but also need to tick the “Tax inclusive box” so it does not add extra tax, correct?
Correct - assuming the fee of $ 10 includes the tax
I am not at all an expert on Australian tax, but bank fees do not attract tax in many jurisdictions so I would check whether the $ 10 includes tax or not
Thanks Joe. I just did a quick search. It would appear that GST is not included in bank fee/charges. Which is not a big issue to fix.
I just had a look at the older version (from 2017) of manager I was using. When doing reconciliation in Bank Accounts, there was no “Tax inclusive” button there to tick. Hence, since doing the upgrade to the latest version, my 'Bank Accounts" are out of wack because of the added GST. I can fix this but will be a long task.
There is at least one exception to GST on bank charges. Merchant card fees DO attract GST. These should be shown on your tranfer report from you card services provider.
Other bank fees generally don’t.
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interest doesn’t have GST nor subcontractors that are not GST registered