Difference between revisions of "14 Tax Codes and BAS/VAT"
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| − | Tax Codes | + | '''Tax Codes and BAS/VAT'''<br> |
| + | <br> 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. | |
| − | + | '''NB.''' 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 | |
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| − | + | <br> 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. | |
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| + | '''The Tax Code List''' | ||
| − | + | '''CAF''' Capital Acquisition - GST Free | |
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| − | + | '''CAG''' Capital Acquisition - Inc GST | |
| − | + | '''CAI''' Capital Acquisition - for making Input Tax | |
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| − | CAI Capital Acquisition - for making Input | + | |
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| − | + | '''E''' Tax Exempt | |
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| − | + | '''EXP''' GST Free Exports | |
| − | + | '''FRE''' GST Free Supplies | |
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| − | + | '''GST''' Supplies Including GST | |
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| − | + | '''NT''' No Tax | |
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| − | + | '''INP''' Input Taxed Sales | |
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| − | + | '''NCF''' Non-Capital Acquisition - GST Free | |
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| − | GST | + | '''NCG''' Non-Capital Acquisition - Inc GST |
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| − | + | '''NCI''' Non-Capital Acquisition - for making Input Tax | |
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| − | NCG and NCF | + | '''WC''' Combined WET and WEG |
| − | These are used for non-capital acquisitions such as inventory, office supplies, phones etc. | + | |
| − | including tax (the majority of purchases) and NCF for acquisitions that are tax free such as Bank Charges and | + | '''WET''' Wine Equalisation Tax |
| − | fees to contractors that are not registered for GST but have an ABN. | + | |
| + | '''WGST''' GST on Wine Equalisation Tax | ||
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| + | You should not replace any of the above codes as reports such as your BAS depend on the correct tax code being used. | ||
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| + | '''What Tax Codes to Use''' | ||
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| + | '''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. | ||
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| + | '''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 | ||
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| + | '''E''' - Used for acquisitions officially exempt from GST eg. Bank Fees | ||
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| + | '''NT''' - Any other transaction that is not subject to GST | ||
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| + | '''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. | ||
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| + | '''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 | ||
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| + | '''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. | ||
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| + | '''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. | ||
Latest revision as of 13:38, 31 October 2011
Tax Codes and BAS/VAT
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.
NB. 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
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 WEG
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 - 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.
