XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Sales
Overview
The "GST on Invoice and/or Credit Note When Not Registered" XBert detects invoices or credit notes issued with GST applied outside of your business’s GST registration period. This alert helps ensure your business is only charging GST when it is legally registered to do so, preventing non-compliant invoicing and potential ATO penalties.
What it does
This XBert scans your sales data for any invoice or credit note that includes GST but falls outside the dates during which your business was registered for GST. If GST has been applied when it shouldn’t be — either before your registration began or after it ended — XBert raises an alert so you can take corrective action.
How it works
XBert checks the GST registration details linked to your ABN and compares them with the dates of invoices and credit notes that include GST. If any transaction is found outside your active GST registration period, an alert is triggered. This is crucial because businesses are not allowed to charge or collect GST unless formally registered — even during the application or deregistration phase.
Example/Use Case
John is starting a new business and has applied for GST registration. He begins invoicing clients with GST included, assuming his registration is just a formality. However, the ATO later advises that GST cannot be charged until the registration is active. Meanwhile, Jane, who recently cancelled her GST registration, continues to charge GST due to outdated tax settings in her accounting software. In both cases, clients may need to be refunded and transactions corrected to stay compliant.
Accounting software
All Australian-compatible accounting software (e.g., Xero, MYOB, QuickBooks Online).
Which countries it supports
Australia only.
Processes
This alert falls under the ‘Sales (AR)’ process and supports BAS and tax compliance accuracy. To resolve this issue:
Review the invoice or credit note flagged by XBert.
If the document has been paid and GST was incorrectly charged, issue a credit note or refund to the customer.
If the document is unpaid, void or reissue it without GST.
Update your accounting software settings to reflect your correct GST registration status to prevent recurrence.
Ensure that GST is only charged on transactions that fall within your registered period, and consult your accountant if needed.