Login
iscover
The ATO has flagged some common errors in suppliers’ activity statements since the introduction of GST at settlement.
Newsletter
Common GST, property errors flagged for tax agents
14 March 2019
•
8 minute read
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
Last year, the government announced new measures that put the onus on purchases to withhold the GST on the purchase price of new residential premises and new residential subdivisions, and remit the GST directly to the ATO as part of settlement.
The amendment is aimed as property developers who fail to remit GST to the ATO despite claiming input tax credits.
Since then, the ATO has noticed that suppliers have not reported property sales in the activity statement period in which settlement occurred at label G1 Total sales and at label 1A GST on sales.
“The new GST at settlement law does not affect a supplier’s obligation to lodge their activity statement and report their GST liabilities on taxable supplies,” the ATO said in an online update.
“At label 1B GST on purchases you or your client must report the total amount of GST credits (including any adjustments) the supplier is eligible to claim.
“Do not report GST that has been withheld at settlement and paid to us by the purchaser.
==
==
“A credit for the amount the purchaser withheld and paid to us will appear on the suppliers' activity statement account once the activity statement is processed.”
Tax agents who have noticed an error in an activity statement, including incorrectly reporting or omitting property sale information, have been reminded to amend the statement before penalties apply.
You are not authorised to post comments.
Comments will undergo moderation before they get published.