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Louis11
Level 1

Amend GST - Australia

Hi, new to quickbooks and wondering how to amend the GST of 10% to a dollar figure that is less than 10%.  e.g. and insurance policy that includes stamp duty does not include gst on the stamp duty portion of the bill.  Therefor the GST is less than 10% of the total invoice.  Thanks in advance.

11 Comments 11
Kristian_S
QuickBooks Team

Amend GST - Australia

Hi Louis11, welcome to the family!

In regards to your question, you are able to give me some more information?

From what I understand you're trying to change the 10% to a percentage that is less than 10%?

Are you trying to create a custom tax code?

Kristian.

Louis11
Level 1

Amend GST - Australia

Hi Kristian, example as follows:
Invoice for insurance premium is total $345. Components are Premium $288.25, Stamp Duty $27.92, GST $28.83.  Normally 10% GST would apply to the total invoice value but in this case GST does not apply to the Stamp Duty portion so the GST is $288.25 x 10% =$28.83. So yes I am trying to reduce the GST to less than 10% of the total invoice value.  $28.83/$345 = 8.36% GST in this case. Not sure what I have to do whether it’s custom tax codes or some way to amend the dollar value. 
christine_w
QuickBooks Team

Amend GST - Australia

Hi Louis-

 

Thanks for providing some background, I want to clarify if the Stamp Duty Out of Scope? It's possible we can split the transaction and apply GST codes appropriately. Additionally, how often are you seeing these transactions, since it's insurance premium; do the payments recur on a set schedule?

 

Keep me posted. 

 

-Christine

Louis11
Level 1

Amend GST - Australia

Hi Christine, yes the Stamp Duty is out of scope.  I've worked out to split the transaction to solve the problem.  It appears you can't over ride the GST amount in Quickbooks.  Is this correct?

 

Also in answer to your question the insurance premiums will be on a monthly set schedule.  Can you suggest setting up a rule etc?

christine_w
QuickBooks Team

Amend GST - Australia

Hi Louis11-

 

Happy that the split transaction is working for you, and yes, correct, we are not able to "override" the GST listed on the transaction. Our GST tab uses those classifications, i.e. 10% on purchases or Out of Scope on transactions to calculate the BAS amount owed or to be refunded. If a transaction is GST Free or is Out of Scope, this amount will still be reported in the BAS, but ultimately not factored in to the final calculation. 

 

In regard to creating a rule, YES! Absolutely you can do this. When creating a rule, you can include a split and input the tax code on each of the transactions within the split, so the premium can include the 10% on purchases and the Stamp Duty would be GST Free or Out of Scope. Once you set it up, it will recognize the incoming transaction on the bank feed, split it and all you need to do is review it before adding it to the selected accounts (as set in the rules). Here's a quick guide on how to use rules, but respond here with any questions on how to set it up. How to set and use banking rules for downloaded transactions

 

Keep me posted on how you go. 

 

-Christine

Louis11
Level 1

Amend GST - Australia

Hi Christine, have created the rule no problem and thanks for your help.

 

Just a query in regard to your comment that the GST Free and Out of Scope GST for expenses would still be reported on the BAS but ultimately not factored into the final calculation.  The ATO guidelines state that these purchases are not reported on the BAS for GST purposes so confused by this.

christine_w
QuickBooks Team

Amend GST - Australia

Hi Louis11-

 

My apologies, Out of Scope is not reported upon but GST Free still can be reported upon. While you don't include GST in the price if your product or service is GST-free. You can still claim credits for the GST included in the price of purchases you use to make your GST-free sales.

 

If you are finding conflicting information, could you send me the reference articles you are referring to?

 

-Christine

Louis11
Level 1

Amend GST - Australia

https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Goods-and-services-tax-(GST)/Simp...

 

Purchases - GST Free not reported on BAS for GST

Purchases - Out of Scope not reported on BAS for GST

christine_w
QuickBooks Team

Amend GST - Australia

Hey Louis11-

 

Thanks, the link provided is showing as Page Not Found, not a problem, again, the GST Free will be included in the reporting, but depending on what you claim and how the ATO expects to receive your return/BAS, you might not be liable/able to claim the credits for the GST Free transactions. 

 

I'd recommend you refer you to an accountant in order to go over how to maintain your GST for your business.

 

-Christine

Shuru
Level 1

Amend GST - Australia

Hi Cristine,

 

I understand that the stamp duty is out of scope of GST. I have split the insurance bill with the GST components and the out of scope of GST ( stamp duty ).How do I manually enter the stamp duty expense in QB online? I tried using the add new button in the expense category however could not get an appropriate detail type such as stamp duty to select. Please assist.

 

Thanks.

 

Kezia

Steven_Product Champion
QuickBooks Team

Amend GST - Australia

Hi Kezia, 

 

You are on the right track in saying you will need to create the expense category manually into QuickBooks for your reporting. If you find that the appropriate Detail Type cannot be found, you are best to use the closest or next best available, as the the Detail Type has no impact or consequence on your ATO lodgements if it is not 100% accurate to the Expense type. 

 

For your reporting, the Account Type will show up on reports and on your ledger, the Detail Type is just a further categorisation but will not prevent you from completing the transaction. 

 

Thanks,

 

-Steven