GST Tax Codes - Xero
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- Опубліковано 14 лип 2024
- In today's tutorial I answer much requested topic 'which GST code to use and why?'
We cover GST on income/expenses, GST free and BAS excluded codes in this video.
www.tallbooks.com.au
info@tallbooks.com.au
Awesome!!!!
Thank you was a great help!
Thanks so much for this video! This is the explanation I've been trying to wheedle from our accountant for a YEAR! Can you explain one more tax code - and that is "Input Taxed". I stumbled across this during reporting for jobkeeper - it appears that xero automatically excludes items with this code from the calculations of cash flow. Can you explain when to use this code as opposed to BAS excluded? (Eg interest income from bank accounts).
Hi Julie, thanks for the kind words, great to hear! In Australia input taxed is no longer necessary if you're classed as a small business. See information online regarding 'Simple BAS' where the codes are reduced for lesser complexity. Input taxed goods are typically Bank fees, interest etc. If you're Australian-based GST free will be perfectly fine instead.
@tallbooks thanks for the video when processing goods purchased overseas we apply gst free and do we use tax exclusive in the drop down .
Hi David, my pleasure. The two components you've mentioned serve different purposes. The tax inclusive/exclusive option it based on whether you wish Xero to add GST to the figure entered on each line, or to include GST in the figure entered. The GST code on each line is to indicate whether that good includes GST or not. In this situation, ignore the inclusive/exclusive as this applies to GST items only, GST free expenses is correct for any international goods purchased.
This sets the record straight for me, thank you🙂 Just have one question which I am hoping you could clarify. What code would you select if your are not registered for GST?
My pleasure, if your business is not registered for GST then you can simply edit your settings to show you are not registered for GST under financial settings (Settings>Advanced settings) then the tax code column will no longer be available. Otherwise if manually doing so everything should be entered as the total using BAS excluded as GST does not need to be split out
Hi, thanks for this video. Just wanted to ask when do we use the NT (no tax) code?
In Xero this code is called 'BAS Excluded' but it's the same principle. Used for items not related to goods or services, such as loan repayments, owner contributions/withdrawals, payroll transactions etc.
very informative video and Ive learned a lot from your videos. Can you please tell me in what account code do we record the annual review fees paid to ASIC. Can we record it as a general expense? thank you.
Usually I would suggest adding an 'Asic fees' or 'filing fees' account to the Chart of Accounts as this will be a recurring charge. GST free.
@@TallBooks thank you so much
thanks alot fir this video. very helpful. can u please show us how to find the total payable GST on Xero for different BASes... thanks
Hi Sher, I suggest watching our videos on BAS preparation in Xero. Use the Activity statement report for this purpose. You might also want to use the GST reconciliation report.
Hi,
Thanks for the video. Could you please make a video about payroll cleaning account. What is reason for it? Why it should be zero? And how can we make it zero?
Also if you can make a video about GST in Xero
Thanks
Hi Basil, great idea! I will make a simple Payroll reconciliation video to explain this at some point. In the meantime, the wages payable account is credited each time staff are paid, when you transfer money to pay staff you allocate the wages to this account and it should return to 0. If not, the staff have been over/underpaid.
How to I adjust the amount in the gst line on a bill
Hi Francesca, Usually when you need to split the amount of gst in a bill you enter two lines.
Firstly, ensure the bill is set to 'tax inclusive' then first line is the amount including gst. The second line is the remainder coded as gst free.
Hi, when I'm using 2 lines for GST, one debit one credit then one there is one error showing you can not enter two balances in the same account. So now how can I enter conversion balance of GST payable and GST receivale in one single GST account. Please reply.
Just calculate the liability as a debit or credit to enter after minusing the GST paid from GST owing and enter that.
I imported a container and received a GST bill which is 10% of what I spent on the container... my question is, how do I code the invoice for a line that is 100% GST? I selected the GST code but when I run my BAS, it is not showing as a GST on Expenses line.. please help.
Hi Jistro this is a curly one you'll need to enter that specific line in a special way. In Xero if you have a 100% GST line you enter it first as its own line. Code the line to the GST account and then under GST code a new code appears called 'GST on exports' select this. It will add the amount purely as GST for you.
@@TallBooks thank you so much for replying. That’s what I figured after doing some reading last night. Thanks for confirming. I subscribed to you.
@@s13180sxSR20DET my pleasure!
Thank you for a wonderful and informative video. Could you please tell me how to record conversion balance of GST payable and GST receivables in xero as xero has only 1 account of GST? I have searched it everywhere but I didn't get it. I'll be thankful to you if you help me out in this. Could you please give me your email address, so that I can contact your there as the way you explain is wonderful.
Hi Rashvinder, great question. Xero uses one control account so you have two options. 1 - Post two lines for the opening balance, one debit one credit. 2 - enter the balance owing/refundable as a single line against GST.
@@TallBooks
Thank you very much