Difference between revisions of "Tax Codes List"

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Revision as of 11:23, 2 March 2011

Overview

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.

Accessing Tax Codes

• Select the Accounts drop down menu at the top left of the main screen
• Select Tax Codes (to create a new code)
• Select Tax Code List (opens the list of codes)

Also can go to the General Tab and select the Tax Code List button

Note: Always consult your accountant and ERP Support before creating a new tax code as there may
be implications for reporting. 

• Active tax codes are ticked in the list
• To activate a tax code double click the code and tick Active in the new window that opens.
• Save

The Tax Code List

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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.

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 e.g. 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 purchases.

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. i.e. 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.