TPAR is not dependent on GST registration is it?

Hi LindaJB, 

Thank you for posting. 

The payments  you need to report on your Taxable Payments Annual Report (TPAR) depend on whether you are business or a government entity. 

One of the payee details you need to report are the total amounts for the financial year of the gross amount paid including GST plus any tax withheld and the total GST you paid them. 

TPAR helps the ATO to identify paid contractors who:

• Have not lodged tax returns
• Have not reported all their income in their tax returns.

This report allows the ATO to improve compliance with tax obligations by comparing the payments made by one contractor against the tax returns of the people they are in turn paying. 

You may refer on this article to know more about TPAR and what entities are required to submit TPAR What you need to know about Taxable Payments Annual Report (TPAR) (intuit.com)

Don't hesitate to post again with any questions. Thanks.

Yes got that.  I'm questioning why QBO makes it impossible to select TPAR reporting on suppliers unless GST is activated in the file.

Hi LindaJB, 

The information provided by businesses and government entities when submitting TPAR, allows to identify those contractors who have not registered for GST where they are required to do so. That is the reason why we need to activate GST of suppliers.  This helps identify those who are not meeting their tax obligations. They may be subject to a review or audit and may face penalties.  You may refer to ATO website click here for more information about this. 

If you encounter any error in lodging TPAR, for further assistance, we'd highly suggest you contacting our QuickBooks Online Support via Chat or Phone Support Hotline on this link: https://help.quickbooks.intuit.com/en_AU/contact

My client (who has paid a contractor) is not registered for GST, and I will not be turning it on in QBO, as I then have to code every transaction Out of Scope.  But I understand that to fill the report field for GST, turning it on would be required.  I guess its damned if I do and damned if I don't.  I'll be making a manual calculation of the GST included on the contractors invoices for this file. Or is there a better way?

Hi LindaJB,

Thank you for clarifying the issue. As per ATO requirement, one of the details you need to report about the contractor is the gross amount you paid to them for the financial year (including any GST).  Being said, this leads us to turn on GST in Quickbooks Online.

Here is what we can do, after completing the requirement for your Taxable Payments Annual Report (TPAR) and lodge to ATO, we can set the default tax rate settings to Out of Scope on your company settings.

Here's how:

1. Click on the gear icon on the top right. 
2. Go to Company Settings or Account and Settings.
3. Click on Advanced tab.
4. Under Accounting, click on the pencil icon to edit the Default tax rate selection.
5. Click on Save > Done. 

Hope this helps answer your questions. Thanks for dropping by the Community.