14 Tax Codes and BAS/VAT - Revision history

Simon Clive at 02:38, 31 October 2011

2011-10-31T02:38:57Z

Simon Clive at 01:32, 31 October 2011

2011-10-31T01:32:45Z

Simon Clive: Created page with "Tax Codes Do you understand where these tax codes feed to? When creating a new account/Product you must select a tax code for the account, this tax code will then auto load wh..."

2011-06-27T22:53:24Z

Created page with "Tax Codes Do you understand where these tax codes feed to? When creating a new account/Product you must select a tax code for the account, this tax code will then auto load wh..."

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Tax Codes

Do you understand where these tax codes feed to?

When creating a new account/Product you must select a tax code for the account, this tax code will then auto load
when creating transactions within ERP. It is important to ensure that the correct tax code is used as the entries made
will automatically feed into the Tax report. If the tax codes are incorrect for an account/product this will affect
the report.

NOTE: The option Tax Code is also available here and is used to create a new tax code. Always
consult your accountant and ERP Support before creating a new tax code as there may be implications for reporting

Below is a list of the Tax Codes that are pre-configured in ERP Software. Some of these codes will never be used by the majority
of businesses and are therefore inactive by default but can be made active if required.

The Tax Code List

Code Description
CAF Capital Acquisition - GST Free
CAG Capital Acquisition - Inc GST
CAI Capital Acquisition - for making Input Tax
E Tax Exempt
EXP GST Free Exports
FRE GST Free Supplies
GST Supplies Including GST
NT No Tax
INP Input Taxed Sales
NCF Non-Capital Acquisition - GST Free
NCG Non-Capital Acquisition - Inc GST
NCI Non-Capital Acquisition - for making Input Tax
WC Combined WET and WGST
WET Wine Equalisation Tax
WGST GST on Wine Equalisation Tax

You should not replace any of the above codes as reports such as your BAS depend on the correct
tax code being used.

What Tax Codes to Use

WC, WET and WGST
These are only used by wine wholesalers. Wine Equalisation Tax is a value based tax on wine consumed in Australia.
WEO applies at 29% of the value of the wine at the last wholesale sale excluding GST.

EXP
EXP is only used for Export Sales and is used to populate Box G2 on the BAS. If you don't make export
sales leave inactive

E
Used for acquisitions officially exempt from GST eg. Bank Fees

NT
Any other transaction that is not subject to GST

INP, CAI and NCI
These are Input taxed supplies codes and are only applicable if your business has income streams from
Residential Rentals, owns a Gold Mine, owns a Bank or provides Financial Supplies or runs a School Tuck Shop.
Most businesses can leave these codes inactive. Otherwise use INP for income, CAI for capital purchases and NCI for
non-capital purchses.

GST and FRE
These codes are used for sales. GST where GST is applicable which is most sales and FRE for GST free sales
such as medical supplies and some foods.
Do not use these codes for purchases or your BAS report will not be accurate

CAG and CAF
These codes are for Capital Acquisitions. ie. Items that will be depreciated such as cars, furniture etc.
Use CAG for acquisitions with GST included and CAF for tax free acquisitions such as Water Rights and items
purchased from a source not registered for GST.

NCG and NCF
These are used for non-capital acquisitions such as inventory, office supplies, phones etc. NCG for acquisitions
including tax (the majority of purchases) and NCF for acquisitions that are tax free such as Bank Charges and
fees to contractors that are not registered for GST but have an ABN.

@@ Line 1: / Line 1: @@
 '''Tax Codes and BAS/VAT'''<br>
 <br> Do you understand where these tax codes feed to?
@@ Line 17: / Line 17: @@
 '''CAI''' Capital Acquisition - for making Input Tax
-E Tax Exempt
+'''E''' Tax Exempt
-EXP GST Free Exports
+'''EXP''' GST Free Exports
-FRE GST Free Supplies
+'''FRE''' GST Free Supplies
-GST Supplies Including GST
+'''GST''' Supplies Including GST
-NT No Tax
+'''NT''' No Tax
-INP Input Taxed Sales
+'''INP''' Input Taxed Sales
-NCF Non-Capital Acquisition - GST Free
+'''NCF''' Non-Capital Acquisition - GST Free
-NCG Non-Capital Acquisition - Inc GST
+'''NCG''' Non-Capital Acquisition - Inc GST
-NCI Non-Capital Acquisition - for making Input Tax
+'''NCI''' Non-Capital Acquisition - for making Input Tax
-WC Combined WET and WEG
+'''WC''' Combined WET and WEG
-WET Wine Equalisation Tax
+'''WET''' Wine Equalisation Tax
-WGST GST on Wine Equalisation Tax
+'''WGST''' GST on Wine Equalisation Tax
 You should not replace any of the above codes as reports such as your BAS depend on the correct tax code being used.
 '''What Tax Codes to Use'''