Top 10 GST mistakes in BAS reports
Bookkeeping - Top 10 GST mistakes in BAS reports

Top 10 GST mistakes in BAS reports

Published on July 1, 2021
Sam Inayat - Bookkeeping, Tax return and BAS expert

Top Accountants

Keeping your books in order has never been easier than with online accounting software.

Business owners get to enjoy the flexibility of having their accounts online, and benefit from the time and money saved.

With online accounting, preparing your own Business Activity Statement (BAS*) is also easier. However, the ATO has identified a number of mistakes commonly made in the BAS reporting form.

Here are the top 10 mistakes that I see regularly.

1. Accidental 'double dipping' on GST

Many business owners make mistakes in the Hire Purchase/Lease of Vehicle of Plant or Equipment area of the BAS. Initially, the client (or their accountant) will claim the full GST component in the first quarter that they purchase their vehicle.

The confusion sets in when they record their regular monthly payments. The client will either continue to code it as a GST or as a Capital Expense. Both the tax codes GST and CAP appear on their BAS Reporting sheet, effectively causing them to 'double dip' on the GST.

Always check your purchase invoice and BAS records to make sure you code your monthly repayments accurately.

2. Incorrect tax codes in your chart of accounts

I would advise you to ask your accountant to provide a default chart of accounts or ask a BAS agent to set up your tax codes before you begin using your online accounting software.

3. Claiming GST against all expenses

There are expenses that do not have a GST component. They include: