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.

 

 

Book a discovery call with Sarah

 


PS. Whenever you’re ready, here are 3 ways we can help you eradicate financial stress in your accounting firm or professional services business – faster …

  1. Sign up to our LinkedIn newsletter, published weekly. You can sign up here: Eradicating Financial Stress

  2. Get our book “Wow – I’m in Business! Your journey from overwhelmed to organised.” It’s full of insights, solutions and downloadable resources you can implement into your business immediately. Click here for your copy: Wow … I’m in Business! – Miss Efficiency

  3. Book a time with me privately and we’ll do a deep dive into your Xero file to help you optimise for cash flow, efficiency and growth. Click here to book: Book a time with Sarah

 

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