XBert Type: Standard
Accounting Software: Xero, MYOB
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "GST Incorrectly Entered on ASIC Transaction" XBert detects bills raised for the Australian Securities & Investments Commission (ASIC) that incorrectly include GST. Even though ASIC is registered for GST, their transactions are deemed GST exempt. This alert ensures you don’t mistakenly claim GST credits you’re not entitled to on your BAS.
What it does
This XBert identifies bills issued by ASIC where GST has been incorrectly applied. It reviews recent transactions and flags any bill that allocates GST to an ASIC-related expense, prompting you to update the transaction before submitting your BAS.
How it works
During each sync, XBert checks bills created for ASIC from the beginning of the current year. If any of these bills include a GST amount — typically due to being entered with a GST Inclusive tax setting — an alert is triggered. This helps prevent non-compliant GST claims for bills that should be GST exempt.
Example/Use Case
John enters a bill from ASIC into his accounting software. Although ASIC is registered for GST, bills from them are not subject to GST. John mistakenly marks the transaction as GST Inclusive, which results in a GST amount being allocated to the bill. XBert flags this so John can correct it before he incorrectly claims it in his BAS.
Accounting software
All Australian-compatible accounting software (e.g., Xero, MYOB).
Which countries it supports
Australia only.
Processes
This alert falls under the ‘Compliance’ category and helps ensure GST is not claimed inappropriately. To resolve this issue:
Open the relevant bill and edit the tax rate or transaction type to reflect that no GST should be applied.
Ensure that the GST amount is not claimed in your Business Activity Statement.
Click the Resolve button in XBert to quickly access and update the transaction.
Going forward, ensure ASIC bills are entered using GST Free or equivalent non-taxable transaction types.