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Tax Office flags biggest GST mistakes taxpayers make

ATO, GST mistakes, taxpayers, Tax Office

The ATO has flagged the biggest GST errors tripping up taxpayers, in an effort to prevent lodgement concerns and penalties this tax time.

If you have a company with an annual turnover of more than $75,000 — including if you are a sole trader — you’ll have to register for and pay GST.

When it comes to claiming GST credits at tax time, about half of all corrections made to GST reporting are typically due to “simple checks” falling through the cracks.

The ATO has revealed the top five issues that typically trip up taxpayers:

1. Timing: Make sure you are reporting for the correct financial year.

2. Miscalculations: Ensure basic transcription or calculation errors don’t impact your lodgement.

3. Eligibility: Personal-use items are strictly off-limits when it comes making claims. You can only claim a credit for any GST included in the price you pay for things you use in your business. You can read more about this here.

4. Proof: You must be able to prove that you are eligible to claim GST credits; for example, through receipts and tax invoices.

5. Charging: Ensure you are charging GST when you need to; that is, when you pass the $75,000 GST threshold in your business.

Tax Office flags biggest GST mistakes taxpayers make
ATO, GST mistakes, taxpayers, Tax Office
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Anonymous - Why does this get all the media attention when in reality it affects very few and the charges are minimal? How about reporting on all the ISA TPD.......
Anonymous - This got to be the smartest comment this century ?!....
nan - So what do you do if you are being ripped of and then can't afford the body corporate fees....
MarkL - The banks may not charge dead people any more ........... but they won't charge them any less either!....