Charged GST Incorrectly: What Should You Do?

 Excess GST is when you treat something as taxable incorrectly and include GST for it in your business activity statement (BAS). This can happen where you incorrectly:

  • treat something which is not a sale as a taxable sale
  • treat a GST-free or input taxed sale as a taxable sale
  • report a higher amount of GST on a BAS due to miscalculating your GST liability.

If you charged your customer too much GST and included it in the price they paid, and you have not paid that extra amount back to them, the law treats that GST as correctly payable. Because of this, the ATO cannot refund it to you.

To deal with GST matters, you can rely on tax professionals for your business to avoid making mistakes. Many businesses turn to small business accountants Melbourne to ensure they are charging GST correctly.






You might be wondering what the consequences can be if you charge GST incorrectly on a sale and include excess GST in your BAS.

Incorrectly Charged GST

Excess GST is when you treat something as taxable incorrectly and include GST for it in your business activity statement (BAS). This can happen where you incorrectly:

  • treat something which is not a sale as a taxable sale
  • treat a GST-free or input taxed sale as a taxable sale
  • report a higher amount of GST on a BAS due to miscalculating your GST liability.
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