Are your suppliers registered for GST?

Are your suppliers registered for GST?

Are your suppliers registered for GST?

As a bookkeeper, I’ve come across many situations where a new supplier has provided what looks like a legitimate Tax Invoice where they’ve quoted an ABN and are charging for GST. Looks okay, so many would assume it’s okay, pay their supplier, and claim the GST credit.

However, if your supplier is not registered for GST you cannot claim a GST credit – even if it’s on their invoice. It’s always a good idea to check the ABN and GST status of new suppliers, and even for existing suppliers periodically to make sure things haven’t changed.

Claiming a GST credit incorrectly can mean that your supplier is paid too much, and you may have to pay back the credit to the ATO.

 

To find out the status of your supplier’s ABN and GST registration, use this tool.

The onus is on the business owner to ensure that you’re claiming the correct GST credits.

Related Posts

member-img

Credit card surcharge – what you need to know

Does your business charge a credit card surcharge for accepting different payment types? This is a f

Read More
member-img

Tips to increase holiday engagement

The holiday season is typically busy. Take this opportunity to show clients how much you appreciate

Read More
member-img

Building a Business Budget

Building a Budget Back to Front Many of us take shortcuts with when building a business budget by e

Read More