Some Important GST Information

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SOME IMPORTANT GST INFORMATION

Introduction

As of 1 July 2000, Australia’s new Goods and Services Tax will be fully operational.

Australian GST Types

From 1 July 2000, Goods and Services will fall into eight different taxable categories, four for Acquired Goods & Services (things you buy in the course of running your business) and four for Supplied Goods & Services (things you sell in the course of running your business). The GST types are simply summarised in the tables below.

 

Acquired Goods & Services GST Types

 

Acquisition GST Type

Description

GST Included (General)

These Goods and Services attract GST which is included in the buying price

GST Included (Capital)

GST Free

These Goods and Services do not attract GST

Input Taxed

These Goods and Services attract GST which is included in the buying price but cannot be claimed as Input Tax Credit. As a result they do not impact the GST Liabilities in the Ledger.

 

Supplied Goods & Services GST Types

Supply GST Type

Description

GST Included

These Goods and Services attract GST which is included in the selling price

GST Included (Capital)

These Goods and Services do not attract GST

GST Free

Input Taxed

 

Polygon Back Office and GST Types

Each GST Type has specific taxation requirements and impacts a General Ledger in a specific way.  Polygon Back Office records the particular GST Type for all Goods and Services bought and sold, then assigns and tracks the appropriate amount to the correct GST Ledger Account.

There are some instances where assigning a GST Type is not appropriate. For instance, cheques written to the ATO in payment of BAS returns, and internal accounting transactions. Therefore, the GST Type ‘Not Applicable’ has been included for transactions entered directly into the Bank Accounts file Cheque & Transaction Registers, and in the Split function for all other parts of the system. Please note that transactions assigned the ‘Not Applicable’ type will not appear on the GST Transactions report, nor will they be included as part of the BAS Calculations Report.

 

Polygon Back Office GST Ledger Accounts

Polygon Back Office has two dedicated Ledger Accounts for tracking GST Liabilities:

•a GST Collected Account - A positive liability, collected when supplies are sold;

•a GST Paid Account - A negative liability, paid when acquisitions are made;

These Ledger Accounts are system accounts, found within the GST Liabilities Account Group in the Liability Account Type of the Polygon Back Office General Ledger.

 

GST Reports & Business Activity Statements

Polygon Back Office produces a detailed GST Transaction Report and the relevant BAS calculations that will assist you in the preparation of your Business Activity Statement and in identifying GST transactions should these be requested by the Australian Taxation Office. Both these reports are accessed through the Reports | Reports File area of the program.  See section Reports > Polygon Back Office Reports for more information about the reports which are available from Polygon Back Office .

 

 

See Also:

Manual Introduction

Polygon POS Management Introduction

Polygon Back Office Introduction

Front of House Introduction

Polygon Back Office Introduction

Polygon Payroll Introduction

Reports Polygon Back Office Reports