I came across awkward situation when doing my last GST report. I run a charity and usually all sales are GST exempt due to the nature of the charity; however, I can claim back GST on all my expenses.
With COVID-19, about half of my transactions are now receipts for the day’s card transactions (where the sales are usually GST free) and the transaction has as a separate line item for the merchant fees and the GST associated with the merchant fee.
I have been recording these as a single transaction with 2 line items to aid reconciliation. A minus value used to apply the costing to the transaction.
The problem when it comes to reporting GST, this shows up in the total sales subject to GST and GST on sales can be a net negative value (see below). When entering the details into the Taxation Office’s online tax reporting system, you cannot enter a negative value into the system.
Is there a way around this other than by creating two separate entries for the one transaction, i.e separate Receipt and Payment transactions.