XBert Type: Standard
Accounting Software: Xero, MYOB
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Supplier Not Registered for GST" XBert identifies cases where your business has paid GST to a supplier who is not registered for GST according to the Australian Business Register (ABR). This helps ensure you’re not claiming GST credits that you’re not entitled to, which could result in ATO audits and financial penalties.
What it does
This XBert reviews payments and spend money transactions made to suppliers who are not actively registered for GST. If GST has been included in those transactions, XBert raises an alert so you can review the payments and avoid claiming ineligible GST on your Business Activity Statement (BAS).
How it works
XBert looks at:
Active supplier contacts matched to ABR records where GST status is not active.
Payments or spend transactions over the past year that include GST and are either linked to a bill or are standalone transactions.
Suppliers with a total GST paid of $10 or more across payments and bank transactions.
If these conditions are met, XBert triggers an alert to help you validate whether GST should have been paid and whether it was incorrectly claimed.
Example/Use Case
Your business has worked with a supplier for several years. In the past year, the supplier deregistered for GST. Without being aware, your team continues paying invoices that include GST and claims those amounts back on the BAS. Months later, the ATO notifies you that GST was claimed in error. You are now required to repay the GST to the ATO and must contact the supplier to request revised invoices or refunds — delaying recovery and affecting your cash flow.
Accounting software
All Australian-compatible accounting software (e.g., Xero, MYOB).
Which countries it supports
Australia only.
Processes
This alert falls under the ‘Purchases (AP)’ category and supports accurate GST and BAS reporting. To resolve this issue:
Use the ABN Lookup website to confirm whether the supplier is currently registered for GST.
If not registered, update the supplier's contact record in your accounting software and adjust the tax rate settings accordingly.
Request revised invoices from the supplier that exclude GST if they were issued in error.
If GST has already been paid, ask the supplier to issue a refund or credit.
Review your BAS lodgements and correct any GST credits that were claimed inappropriately.