XBert Type: Standard
Accounting Software: Xero, MYOB
Country Restriction: Australia only
Risk Type: Tax Risk
Business Function: Contacts
Overview
The "Business Has Incorrect GST Status" XBert finds supplier contacts in your accounting software that are set up to claim GST on purchases, even though the supplier is not currently registered for GST on the Australian Business Register (ABR). It only raises the alert once you have actually claimed GST against that supplier, so you can correct your records before it affects your Business Activity Statement (BAS).
What it does
This XBert reviews your active supplier contacts that are set to apply GST by default on purchases. It matches each supplier's ABN to the official record on the ABR and checks whether that business holds a current GST registration. It then looks at whether you have recorded any GST-bearing transactions for that supplier, so it can tell the difference between a harmless setting and a real tax exposure.
How it works
XBert raises this alert for an active supplier when all of the following are true:
The supplier is set to claim GST on purchases (GST on Expenses in Xero, or the GST tax code in MYOB).
The supplier's ABN is matched to a business on the ABR.
That ABR record shows the business is not currently registered for GST.
You have actually claimed GST on the supplier — a transaction carrying a GST amount — dated on or after the date the supplier's GST registration was cancelled. When the cancellation date is not known, any GST you have claimed on the supplier counts.
This means the alert focuses on real risk. It deliberately ignores suppliers you have set to GST but never actually claimed GST against, such as government or public bodies billed with no GST, and suppliers that were de-registered long ago with no GST-bearing transactions since. Suppliers that are correctly registered for GST are never flagged.
Example/Use Case
Priya runs a small landscaping business and has used the same equipment hire supplier for five years. Last year the supplier's turnover dropped and they cancelled their GST registration, but they never told Priya. She kept entering their bills with GST included — around $90 of GST on each $990 bill — expecting to claim it back. XBert matched the supplier's ABN to the ABR, saw the registration had been cancelled, and noticed Priya had claimed GST on bills dated after the cancellation. She removed the GST from those bills, asked the supplier for corrected invoices, and fixed her records before lodging her next BAS, avoiding a repayment to the ATO.
Accounting software
Xero and MYOB.
Which countries it supports
Australia only.
Processes
This alert falls under the 'Cleanup' process category and helps you avoid claiming GST you are not entitled to. To resolve it:
Check the supplier's current GST registration on the ABN Lookup website using their ABN.
If the supplier is not registered for GST, update their contact record in your accounting software so purchases no longer apply GST by default.
Ask the supplier for corrected invoices that exclude GST for any period when they were not registered.
Adjust the affected bills or transactions to remove the GST that was incorrectly applied.
Review any BAS you have already lodged to confirm no incorrect GST credits were claimed, and arrange a correction or a credit from the supplier if needed.
Once the records are corrected, mark the XBert as resolved.