Avoid GST Classification Errors: ATO Guidance for Small and Medium Businesses
Self-Review Tips for Food and Health Product GST Compliance
GST classification errors can lead to significant under-reporting of GST for some taxpayers.
The ATO recently issued guidance for small to medium businesses on self-reviewing GST classification of food and health products.
The use of this guide is not mandatory, although the ATO encourages small to medium businesses to regularly self-review the GST classification of supplies, and adopt better practice processes and controls as listed in the accompanying checklist.
The checklist provides practical, step-by-step guidance for entities to:
- self-review the GST classification of their supplies (products they import, purchase as stock or produce for sale); and
- assess the robustness of their business systems, processes and controls that directly impact their GST classification systems.
Small business food retailers with turnover of $2 million or less may use one of the ‘GST simplified accounting methods’ to account for GST instead.
Why use an accountant to lodge your tax returns?
Depending on your business, GST can be fairly complex and many businesses prefer to leave it up to their accountant to manage. This ensures they don’t miss receiving any GST deductions and avoid ever missing their BAS statement lodgement and receiving a fine.
Let Omnis Business Accountants in West Perth manage your BAS activity so you know it’s correct and submitted on time, giving you one less thing for you to worry about! Call our team on 08 9380 3555.
