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Fuel Tax Credit (FTC) and BAS

Please Note: In March 2018 QuickBooks will start rolling out a new GST experience. This will happen gradually over a period of time. If you can see the View reports menu when you are on the GST centre main page, you are in the classic experience, and if you can see Run Reports menu, you are on the updated experience.

What is Fuel Tax Credit (FTC)?

Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) that's included in the price of fuel used in:

  • machinery
  • plant
  • equipment
  • heavy vehicles
  • light vehicles travelling off public roads or on private roads.

The amount depends on when you acquire the fuel, what fuel you use and the activity you use it in. Fuel tax credits rates also change regularly so it's important to check the rates each time you do your business activity statement (BAS).

Unlike the other taxes reported on BAS, Fuel Tax Credits are refundable amounts, and depending on the business may even result in a refund from the ATO for fuel taxes paid.

QuickBooks does NOT support FTC calculation natively at this time, and therefore FTC figures have to be calculated manually or via another solution.

For more information about Fuel Tax Credits, please consult a tax professional and explore the ATO website links below:​

FTC in Classic GST Centre

When FTC is enabled in GST Settings, your BAS form will include a Fuel tax credit over claim (do not claim in litres)​ line under Amounts you owe the tax office, and a Fuel tax credit (do not claim in litres) line under Amounts the tax office owes you.

Claiming Fuel Tax credits on your BAS is done by recording adjustments on the required line. Adjustment transactions recorded on line 7C or 7D will increase or decrease the balance transferred to BAS suspense upon lodgement.

Any adjustments created will also be listed in the related section of the GST Detail report for that period. Adjustment transactions cannot be changed, only deleted.

To include a Fuel tax credit on your BAS, record an adjustment on line 7D by clicking the blue Record link on the far right. Include the amount to claim under Adjustment amount, select the Adjustment account, check the Adjustment date and add any memo details as required. Once you Save the adjustment, the amount you owe will then display on your BAS

To include Fuel tax credit over claim amounts, repeat the same process as above but record your adjustment on line 7C.

FTC in Updated GST Centre

When FTC is enabled in GST settings, QuickBooks will create a Fuel Tax Income account, and include FTC fields inside your BAS filing flow.

To claim a Fuel Tax Credit back from the ATO, input the amount under Fuel tax credit amount during the Other taxes filing stage of your BAS.

Tick the I need to include a credit over claim if you need to pay back a Fuel Tax Credit previously taken.

When your activity statement is lodged, QuickBooks will automatically write a journal entry against the Fuel Tax Income account and the ATO Clearing account.

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