April GST and Tax Invoices Introduction to the GST

Document Sample
April GST and Tax Invoices Introduction to the GST Powered By Docstoc
					      April




2.4      GST and Tax Invoices

2.4.1          Introduction to the GST

The Goods and Services Tax (GST) commenced in Australia on 1 July 2000. The principle
Act governing the operation of the GST is the Goods and Services Tax Act (1999) as
amended.

In addition to the Act, the Commissioner has issued a number of GST Rulings and GST
Determinations outlining the Australian Taxation Office’s interpretation of the legislation.
The major principles of the GST are:

           the GST is a flat 10% broad-based tax on the private consumption of most goods
           and services in Australia;
           the tax is charged and collected by registered entities at each stage in the
           production chain;
           the GST is remitted by the registered entity to the ATO on a monthly or quarterly
           basis in a form entitled the “Business Activity Statement”;
           each registered entity is entitled to claim a credit for any GST paid. This credit is
           known as an “input tax credit”; and
           the tax is ultimately borne by the consumer.

Each registered entity is required to remit the net amount of GST collected to the
Australian Taxation Office each month or quarter via the Business Activity Statement
(BAS). This process is illustrated in Diagram 1 on the following page




      MYOB Training Manual                                                                       Part 2:
      April 2006                                 2-80                   Processing Transactions in MYOB
                                   Diagram 1: How the GST Works


       Manufacturer makes and sells        GST payable              $10
        chocolate to a wholesaler for      Less: input tax credit     0                ATO receives $10
          $100 + $10 GST = $110            Net amount owing         $10




       Wholesaler buys chocolate for       GST payable              $20
     $110. Pays $10 GST. Sells to          Less: input tax credit   (10)               ATO receives $10
  retailer for $200 + $20 GST = $220       Net amount owing         $10




      Retailer buys chocolate for $220.    GST payable              $30
      Pays $20 GST. Sells to customer      Less: input tax credit   (20)               ATO receives $10
        for $300 + $30 GST = $330          Net amount owing         $10




                                                                                                =
  Customer pays $330 to the retailer to buy the chocolate. Pays $30 GST                ATO receives $30




2.4.2           Types of Supplies

There are three types of supplies for the purposes of the GST:

(a)      Taxable supplies;
(b)      GST-free supplies; and
(c)      Input taxed supplies.


(a) Taxable Supplies

A taxable supply is the supply of goods, services, provision of advice or information, a
grant, assignment or surrender of real property, a creation, grant, transfer, assignment, a
financial supply and an entry into or release from, an obligation to do anything, to refrain
from an act, or to tolerate an act or situation.




      MYOB Training Manual                                                                          Part 2:
      April 2006                                       2-81                Processing Transactions in MYOB
Once a registered entity has made a taxable supply it is required to charge the 10% GST.
The 10% GST is added to the “value” of the supply. Hence, if the value of the supply is
$100, the 10% GST must be added, giving a total of $110. In Australia, all prices are
required to be shown GST-inclusive. Hence, to calculate the amount of GST that has been
included in the price, you divide by 11. Put another way, the GST payable on a taxable
supply is 1/11th of the price displayed.


(b) GST-Free Supplies

A GST-free supply is one which does not attract the 10% GST. In other words, it means
that the supplier is not required to charge the 10% GST. However, the registered entity
can still claim back input tax credits on the inputs used to produce the GST-free supply.
This effectively results in no GST being collected on the supply of GST-free goods and
services.

Examples of GST-free supplies include:

   basic food;
   health;
   education;
   childcare;
   exports and other supplies for consumption outside Australia;
   religious services;
   non-commercial activities by charitable institutions;
   raffles and bingo conducted by charitable institutions;
   water and sewerage facilities;
   supplies of going concerns;
   transport and related matters;
   precious metals;
   supplies through inward duty free shops;
   grants of freehold and similar interests by governments;
   farm land;
   cars used by disabled persons; and
   international mail.

When coding a GST-free supply in MYOB, you should use the code “FRE”. If an
organisation has a GST-free supply, it may still claim back input tax credits on the inputs
used to produce the GST-free supply. This effectively results in no GST being collected on
the supply of GST-free goods and services.

For more information on the GST concessions provided to the non-commercial activities of
charitable institutions, refer to the following ATO fact sheet. For information specific to
residential rent, refer to Section 3.6.




                                       Web link:
                   http://www.ato.gov.au/content/downloads/n7633.pdf




   MYOB Training Manual                                                                     Part 2:
   April 2006                                2-82                  Processing Transactions in MYOB
(c) Input Taxed Supplies

An input-taxed supply means that the registered entity (ie. the supplier) is not required to
charge the 10% GST to the consumer. However, unlike a GST-free supply, the supplier is
not able to claim an input tax credit on the inputs used to produce the input-taxed supply.
Examples of input-taxed supplies include:

   financial supplies (such as loans, bank charges, account keeping fees and interest);
   residential rent;
   residential premises;
   precious metals; and
   school tuckshops and canteens.

When coding an input-taxed supply in MYOB, you should use the code ‘INP’.

A summary of the three types of GST supplies is shown in Table 1 below.


               Table 1: Summary of the 3 Types of GST Supplies



         Type of Supply           Charge the 10% GST?              Claim Back the
                                                                  Input Tax Credit?
              Taxable                      Yes                           Yes
            GST-Free                       No                            Yes
           Input-Taxed                     No                             No



2.4.3       Registration for the GST

To be liable for GST or to claim input tax credits, an organisation must be registered. An
entity is required to register for the GST if their annual turnover exceeds $50,000 per
annum. In the case of nonprofit organisations, the registration threshold is set at
$100,000 per year.

An entity above these thresholds must register for the GST. However, an entity below
these thresholds may voluntarily register for the GST. Entities may register by completing
the appropriate form available from the ATO or by or registering on-line at
http://www.abr.business.gov.au.

When an entity registers for the GST, it will be issued with an Australian Business
Number (ABN). The ABN is the same as the registration number for GST.


2.4.4       Attribution Basis (Cash v Accruals)

There are two methods of accounting for the GST:

        cash method; and
        the non-cash method (the accruals method).



   MYOB Training Manual                                                                      Part 2:
   April 2006                                 2-83                  Processing Transactions in MYOB
An entity may elect to use the cash basis of accounting if one of the following conditions
are met:

        its annual turnover is less than $1,000,000;
        it uses the cash basis for income tax purposes;
        the Commissioner determines that the enterprise can use the cash basis; or
        the entity is a charitable, gift-deductible entity or government school.

Where an entity falls under one of the above conditions, it may elect to use either the
cash or accruals basis of accounting. However, if an entity is not eligible to use the cash
basis, it must use the accruals basis of accounting.


Under the cash basis of accounting, the GST is payable in the tax period when the cash is
received from the customer in respect of a taxable supply, not the date that the tax invoice
is issued. An input tax credit for a creditable acquisition is claimed when the payment is
made in cash, rather than the date that the tax invoice was issued.

Under the accruals basis of accounting, GST is payable on a taxable supply in the tax
period in which:

        the entity received consideration for the supply; or
        when the tax invoice is issued to a customer,

whichever is the earlier.

Similarly, under the accruals basis of accounting, an input tax credit can be claimed on a
creditable acquisition in the tax period in which:

        the entity provided consideration for the goods or services; or
        when the tax invoice has been received,

whichever is the earlier.

An entity cannot claim an input tax credit unless it has a tax invoice for the purchase at the
time of lodging the BAS.


2.4.5       Tax Periods (Monthly v Quarterly)

A tax period is a period for which an entity calculates its GST and lodges its return (known
as the Business Activity Statement). An entity has a choice of whether it wants to lodge
monthly or quarterly Business Activity Statements (BAS).

The quarterly tax periods end on 31 March, 30 June, 30 September and 31 December.
The monthly tax period ends on the last day of each month.

An entity is required to use a monthly tax period if the entity's annual turnover is $20
million or more or the entity has a history of failing to comply with tax obligations.

When lodging its Business Activity Statement, the entity calculates the amount of GST
payable in respect of taxable supplies charged to customers. It also calculates the
amount of the GST paid (ie. input tax credits).
The difference between these two amounts is referred to as the “net amount”. The
registered entity must remit the net amount to the ATO on the Business Activity Statement.

   MYOB Training Manual                                                                        Part 2:
   April 2006                                  2-84                   Processing Transactions in MYOB
Conversely, where an entity determines a negative net amount, this signifies a refund that
the ATO owes the entity. The ATO must process the refund within 14 days of receipt of the
BAS.

For quarterly lodgers, the Business Activity Statement must be lodged within 28 days of
the end of the relevant tax period. For example, the BAS for 31 March 2004 is due by 28
April 2004. In the case of the 31 December 2003 BAS, the lodgment date is 28 February
2004 rather than 28 January 2004.

In the case of monthly lodgers, the BAS must be lodged within 21 days of the end of the
relevant tax period.



2.4.6         Understanding GST Tax Codes

Although there are a variety of tax codes available in MYOB, we have removed the ones
which you are not likely to be using – Luxury Car Tax, for example.

We have also set up the accounts to reflect the correct codes, so that completing the
BAS will be easier. However, it may well be that you will have to add accounts from time
to time, so will need to have an understanding of the codes available and applicable.
(Please refer to Section 2.1.7, where you are reminded that tax codes may vary between
organisations.)

The MYOB codes remaining are shown in Table 2 as follows:

                          Table 2: MYOB Coding System


 MYOB Code                                     Description of the MYOB Code

    CAP              Capital acquisitions tax code – used to record GST on assets purchased by the entity

    FRE              GST-Free – used to record the entity’s GST-free sales

    GNR              A supplier that is not registered for the GST

    GST              GST tax code – used to record revenue or expenses on which the entity has collected or
                     paid GST (eg. telephone expense)

        INP          Input-taxed – used for bank charges and other financial supplies

        N-T          No tax – not reported on the BAS – used to record transactions outside the GST
                     system, such as cash transfers and donations

    ABN              No ABN has been quoted on the invoice or tax invoice. Accordingly, the payer is
                     required to deduct and remit 48.5% ABN withholding tax




   MYOB Training Manual                                                                                    Part 2:
   April 2006                                           2-85                      Processing Transactions in MYOB
2.4.7       Tax Invoices

A registered entity who makes a taxable supply and charges the GST is required to issue a
tax invoice.

A supplier must issue a tax invoice within 28 days of the date of sale, if requested, for all
supplies with a GST exclusive price exceeding $50 (ie. $55 inclusive of GST). The
Commissioner takes the view that the $50 test should be applied to the total of the tax
invoice and not the value of each separate item (see GST Ruling GSTR 2000/17). This
GST Ruling can be found at the following address:



                     Web link: http://law.ato.gov.au/pdf/gst00-17.pdf



According to Section 29-70 of the GST Act, a tax invoice must include:

        the Australian Business Number (ABN) of the entity issuing it;
        the GST-inclusive price of the supply;
        the words "tax invoice" stated prominently;
        the date of issue of the tax invoice;
        the name of the supplier and the name of the recipient;
        the address or ABN of the recipient;
        a brief description of each thing supplied including the quantity; and
        be in a form approved by the Commissioner.

The precise requirements vary according to whether the amount payable is less than
$1,000.

Where the GST payable on the tax invoice is exactly 1/11th, the tax invoice may either
show:

        the total price inclusive of GST, with a statement confirming that the total amount
        payable includes GST;
        the amount of the supply plus the GST separately disclosed.

Where the GST is less than 1/11th (ie. where the supply consists of a taxable supply and a
GST-free supply) the amount of GST payable must be separately disclosed.


2.4.8       Preparing the Business Activity Statement

The Business Activity Statement (BAS) is issued by the Australian Taxation Office. If
your organisation has chosen a monthly tax period, this form will arrive every month.
Conversely, if the organisation has chosen a quarterly tax period, the BAS will issue and
arrive every 3 months. You should receive the BAS a week or so before the end of the
relevant tax period.

The BAS includes the amount of GST charged by your organisation (and subsequently)
collected as well as the GST paid by your organisation on acquisitions. These two
amounts are offset to be called the ‘net amount’.


   MYOB Training Manual                                                                        Part 2:
   April 2006                                  2-86                   Processing Transactions in MYOB
The BAS also includes information on PAYG withheld from salaries and wages for the
relevant tax period and ABN Withholding tax where no ABN was quoted by the supplier.
In the case of private sector entities, the BAS also requires payment of PAYG
instalments. Essentially, this is payment of income tax for the current income year each
quarter.

A sample Business Activity Statement has been included later in this manual.


2.4.8.1     Setting up BAS Information

Whilst MYOB has a useful BASlink function, you must still lodge the ATO’s hard copy
BAS. It is not permissible to print off the MYOB BAS and send this to the ATO. Each
BAS issued by the ATO has its own unique bar code. However, MYOB can replicate the
BAS such that all you need to do is transcribe the figures from the MYOB BAS to the
ATO-issued BAS for lodgement.

Before preparing the BAS, the following steps need to be taken:

1. All bank accounts need to be reconciled.

2. Print the report called ‘GST [Detail – Cash]’, assuming that your organisation is on
   the Cash method of accounting for GST purposes. To do this, go to the Command
   Centre on MYOB, and click on the dropdown arrow beside the word ‘Reports’ at the
   bottom of the screen. Select ‘GST/Sales Tax’. (If your organisation is on the Accruals
   method of accounting for GST purposes, choose the ‘GST [Detail – Accruals]’
   printout instead.)

From the list that appears, select ‘GST [Detail – Cash]’. The following screen will appear:




   MYOB Training Manual                                                                      Part 2:
   April 2006                                 2-87                  Processing Transactions in MYOB
In this case, we want to select ‘All Tax Codes’; and ‘Both Collected and Paid’ in the
section to the lower right. The dates must be changed to collect all activity for the
quarter in question – three months. This window has defaulted to the ‘Advanced Filters’
tab – clicking of ‘Report Fields’ will allow you to select the fields you wish to be reported
on your report, and ‘Finishing’ will enable you to control the final look of the report.

Click on Display, and if satisfied with what appears, ‘Print’. Check every entry to make
sure that the correct Tax Codes have been used. When satisfied, move on to setting up
BAS Information.




   MYOB Training Manual                                                                       Part 2:
   April 2006                                 2-88                   Processing Transactions in MYOB
2.4.8.2     Preparing the BAS Worksheet

Select the ‘Accounts’ icon on the Command Centre. Select ‘BASlink’. In the BASlink
Window, select ‘BAS Info’. The following screen will appear:




Explanation of the Above Options:

(a) Calculation Method:




‘Calculation worksheet’ requires all GST fields to be completed and calculates the tax
paid and collected by dividing fields G8 and G19 by 11.

‘Accounts’ means the tax paid and collected derived from MYOB.

It is recommended that you use the ‘Calculation worksheet’, and check the resulting
figures against the final figures on your ‘GST [Detail – Cash]’ printout. This gives you an
extra way to check that figures have been input correctly.




   MYOB Training Manual                                                                     Part 2:
   April 2006                                2-89                  Processing Transactions in MYOB
(b) Reporting Options:




‘GST Reporting Frequency’ means either Quarterly or Monthly.

‘GST Accounting basis’ means Cash or Accrual.

Check your previous BAS to see whether your organisation has chosen monthly or
quarterly tax periods and whether it is on the cash or accruals method.

‘GST Option’ – These are three options provided by the ATO on the BAS. The three
options are:

           Option 1 - Calculate GST and report Quarterly
           Option 2 - Calculate GST and report Annually
           Option 3 - Pay GST Instalment Amount

Once again, check your previous BAS to see which option your organisation has chosen.


(c)            PAYG Instalments




As explained above, most private sector entities are required to pay income tax
progressively throughout the income year. For these entities, the ATO gives a choice
between:

           Option 1 - a set $ amount advised by the ATO
           Option 2 - % of sales advised by the ATO

In the case of most nonprofit organisations, the entity is exempt from income tax.
Consequently, if Option 1 is selected, the PAYG Instalment amount will be $0 and if
Option 2 is selected, the PAYG Instalment rate will also be 0%.




      MYOB Training Manual                                                              Part 2:
      April 2006                            2-90               Processing Transactions in MYOB
(d) PAYG Withholding




This is usually set at quarterly – if you are withholding more than $25,000 per year, this
will be set as monthly by the ATO, and a monthly Instalment Activity Statement (IAS) will
be sent, so that you can report and pay this monthly.


(e) Simplified Accounting Method:




The Simplified Accounting Method is predominantly used by businesses such as
bakeries and delicatessens. Accordingly, it is not expected that this feature will be used
by your nonprofit organisation.

When you have finished, click ‘OK’. You will be returned to the previous screen.



   TIP:     Please ensure that you select the appropriate options for your organisation
            – however, in many cases, they will not differ greatly from what is already
            shown here. When finished, click on ‘OK’.




Select your Reporting Period

In the ‘Reporting Period’ window, select the LAST month of the quarter in which you are
working.




For the purposes of this manual, we will be working on the second quarter of the 2004
financial year – the quarter starts in October 2004 and ends at the end of December
2004. When all the information has been set up to your satisfaction, click on ‘Prepare
Statement’.



   MYOB Training Manual                                                                    Part 2:
   April 2006                                2-91                 Processing Transactions in MYOB
2.4.8.3     Setting up the BAS Worksheet

The first screen to appear will contain a warning. Read the Warning. Click ‘OK’.

If your organisation’s ABN has not yet been entered, the Company Information Window
will be displayed so that you can enter the organisation’s 11-digit number ABN.

A ‘Disclaimer’ window will next appear – simply click ‘OK’.

Another window will appear, asking if you wish to view a help screen on ‘BASlink Setup
Requirements’. This is entirely up to you, but can prove confusing. For now, we will walk
you through the various requirements. Choose ‘No’.

The following screen should appear. It is large, and will require you to use the scroll bars
to the right and bottom of the window to move around it sufficiently.




   Starting at the top, we will set up each field – these correspond to fields on your
   actual BAS.




   MYOB Training Manual                                                                      Part 2:
   April 2006                                 2-92                  Processing Transactions in MYOB
TIP:     Please note that gifts (donations) fall outside the scope of the GST Act.
         Hence, they should be coded to “N-T” or no-tax in both MYOB and Quick
         Books. Gifts (or donations) are not reported on the Business Activity
         Statement.



G1: Total Sales (including any GST)

G1 is used to record the gross sales and any other income earned by your
organisation. This figure includes any GST you have collected and includes any
amounts shown at G2, G3 and G4.

Click on the ‘Setup’ button to the right of the field. The following screen should appear:




In setting up G1, you should click on ‘GST’ and ‘FRE’

Click ‘OK’.


G2: Export Sales

It is not expected that your organisation will be engaged in export activities. Hence,
leave this field blank.


MYOB Training Manual                                                                      Part 2:
April 2006                                2-93                   Processing Transactions in MYOB
G3: Other GST-Free Sales

This field is used to record any sales that are GST-free.




In setting up G3, you should only click on ‘FRE’.


G4: Input Taxed Sales

As previously mentioned, input taxed supplies include financial supplies such as
bank fees, and residential rent and certain fundraising events conducted by
charitable institutions. For more information on this, refer to Section 3.6 of this
manual for further guidance.


G5: G2 + G3 + G4

This field adds together G2, G3 and G4.


G6: Total Sales Subject to GST [ie. G1 - G5]

MYOB will automatically calculate the total sales which have been subject to GST for
the previous quarter. G6 equals G1 minus G5.




MYOB Training Manual                                                                  Part 2:
April 2006                                2-94               Processing Transactions in MYOB
G7: Adjustments [if applicable]

Adjustments may occur where there has been an overstatement or understatement
of GST shown in a previous BAS. For example, you may have discovered that the
GST was not declared in a previous BAS in respect of a grant. The amount of the
GST collected relating to a previous quarter should be shown here. However, you
should consult your accountant before including any amounts at G7.


G8: Total Sales Subject to GST After Adjustments [ie. G6 + G7]

This field adds together G6 and G7.


G9: GST on Sales [G8 divided by eleven]

At G9, MYOB automatically calculates the amount of GST on sales. This will be
1/11th of the sales for the quarter.


G10: Capital Purchases [Including any GST]

Next, we move on to G10 – Capital Purchases [Including any GST]. The following
screen should appear:




In setting up G10, you only need to click on ‘CAP’. Click ‘OK’.



MYOB Training Manual                                                                       Part 2:
April 2006                                2-95                    Processing Transactions in MYOB
G11: Non-Capital Purchases [Including any GST]

Next, we set up G11 – Non-Capital Purchases [Including any GST].

Here, you will need to click on ‘GST’ and ‘FRE’ – a message will appear, telling you
must also choose ‘FRE’ at G14. Click ‘OK’.




G13: Purchases for Making Input Taxed Sales

Once again, this section mainly applies to financial institutions and real estate
management companies and is not expected to apply to nonprofit organisations.
Hence, it should be left blank, unless your organisation is involved in real estate and
fundraising. For more information on this, refer to Section 3.6 of this manual for
further guidance.


G14: Purchases Without GST in the Price

This will record all purchases made which are not, for whatever reason, subject to
GST – these could payments for work done for you by a contractor, who is not
registered for the GST. In this case, you would not have recorded GST when
processing this payment through MYOB.




MYOB Training Manual                                                                    Part 2:
April 2006                               2-96                  Processing Transactions in MYOB
The next screen should look something like this.




The option you should choose at G14 will be ‘FRE’. Click ‘OK’ to enter it.


G15: Estimated Purchases for Private Use or Not Income Tax Deductible

Once again, it is not expected that nonprofit organisations will be using this option.


G16: G13 + G14 + G15

This field adds together G13, G14 and G15.


G17 – Total Purchases Subject to GST [G12 - G16]

MYOB will automatically calculate the total purchases which have been subject to
GST for the previous quarter. G17 equals G12 minus G16.


G18: Adjustments [if applicable]

Once again, adjustments may occur where there has been an overstatement or
understatement of GST claimed in respect of a previous quarter. For example, you
may have discovered that the GST was not claimed in the previous BAS in respect of

MYOB Training Manual                                                                      Part 2:
April 2006                                2-97                   Processing Transactions in MYOB
electricity paid. The amount of the GST paid relating to a previous quarter should be
shown here. However, once again, you should consult your accountant before
including any amounts at G18.


G19: Total Purchases Subject to GST after Adjustments [G17 + G18]

This field adds together G17 and G18.


G20: GST on Purchases [G19 divided by 11]

At G20, MYOB automatically calculates the amount of GST on purchases. This will
be 1/11th of the amounts spent on purchases and expenses during the previous
quarter.

At this point, you have entered all of the information pertaining to the GST. Now, go
back to the tabs at the very top of the screen, and click on ‘Front sheet’. The
following screen will appear:




Again, this screen is very large, and we have used the scroll bars to achieve the view
above. You will have to use the scroll bars to the right and bottom of the screen to
move around it. There are a few details you will need to add at this point.

At the top right of the page, the document ID will need to be entered. This is the
number that will appear on the hard copy of the BAS, as sent by the ATO. Type it in.




MYOB Training Manual                                                                    Part 2:
April 2006                               2-98                  Processing Transactions in MYOB
Underneath that, the next requirement will be to enter the contact phone number and
contact person who has completed the BAS. Enter this information as well.




If you scroll down to the rest of the screen, the bottom half of your page will look
something like this. There is nothing else for you to fill in on the front.




MYOB Training Manual                                                                  Part 2:
April 2006                              2-99                 Processing Transactions in MYOB
Now, click on the tab at the very top marked ‘’Back sheet’. The next screen should
look something like this.




The left-hand side of this page contains information pertaining to PAYG Tax Withheld.
Similar to the ‘GST Worksheet’, you need to set this information up, by clicking on the
‘Setup’ button at W1. The following screen will appear:




MYOB Training Manual                                                                  Part 2:
April 2006                              2-100                Processing Transactions in MYOB
In this field, click on all Items except the final six – these are unlikely to be used by
your organisation, and should not be included at W1. If any of these options have
been, or are likely to be used by your organisation, consult your accountant. Click
‘OK’ when finished.

The next field is ‘W2 – Amounts Withheld from Payments Shown at W1’. Click on
‘Setup’. The following screen will appear:




MYOB Training Manual                                                                      Part 2:
April 2006                                2-101                  Processing Transactions in MYOB
The only field that will needs to be ticked is ‘PAYG Withholding’. If the situation arises
that the other options become necessary, once again, consult your accountant.

The next options are W4 and W3 as below:




These fields are necessary only if you have withheld 48.5% tax where the supplier
has not quoted their ABN. If you have withheld the 48.5% ABN Withholding Tax, it
should be included at Item W4. The final calculation of these fields will appear at W5.
Scroll to the bottom of the sheet. It should look something like this:




MYOB Training Manual                                                                      Part 2:
April 2006                                2-102                  Processing Transactions in MYOB
You can see that MYOB automatically transfers all of the figures entered into thus
far. Don’t forget to fill in the time taken to compile the information and complete the
BAS. Once finished, click on ‘Print’ at the bottom of the page.

At this point, an error message may appear. Do not be alarmed!!! Click ‘Yes’ to view
the errors. Fix any errors that are relevant by clicking on the zoom arrow to the left of
each statement – this will take you to the place on the screen that contains the error
(or lack of information). Ignore the fact that 5A is not linked, unless this is an option
your organisation is taking.

A worksheet will be printed, containing all of the figures which appear on the screen.
When you have printed this, click on ‘Save Setup and Exit’. This copy of the
worksheet will be saved, for future reference.




MYOB Training Manual                                                                      Part 2:
April 2006                                2-103                  Processing Transactions in MYOB
TIP:     Remember that you should not lodge the MYOB-generated BAS with the
         ATO. This is purely for your records. You need to transcribe the figures
         generated by MYOB BASlink to the original hard copy of the BAS sent
         by the ATO.



When completed and duly signed, take a photocopy, and store the photocopy in a
safe place. Send the original BAS to the ATO, along with any payment you may be
making (if not, just send the BAS).



WARNING FOR BOOKKEEPERS: Many bookkeepers provide BAS-related
services including preparation of a client’s BAS. If you are a bookkeeper who
provides BAS-related services to clients as part of a business, you need to be
aware of the legal restrictions regarding who can charge a client for the
provision of tax advice (including preparation of a BAS).

Section 251L of the Income Tax Assessment Act 1936 (as amended) prevents
any person from charging or receiving a fee for preparing or assisting a client
with any income tax matters unless they are a registered tax agent.

The ATO has advised that it an offence for bookkeepers to charge a fee for the
preparation of a BAS if they are not a member of a recognised professional
association or working under the direction of a registered tax agent. There are
currently five professional bodies that qualify as professional associations.
These five professional associations are listed on the ATO website.

Hence, if a bookkeeper who prepares a nonprofit organisation’s BAS is not
a registered tax agent or member of one of the five recognised
professional associations, they must have the BAS checked and approved
by a registered tax agent or a member of one of the five professional
associations.

More information on this topic can be found at the ATO’s website, being:
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/40604.htm.




MYOB Training Manual                                                                Part 2:
April 2006                             2-104               Processing Transactions in MYOB

				
DOCUMENT INFO
Shared By:
Stats:
views:283
posted:3/5/2009
language:English
pages:25