XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Payment to Supplier Not Registered for GST" XBert identifies cases where your business has paid GST to a supplier who is not currently registered for GST according to the Australian Business Register (ABR). This alert helps you avoid mistakenly claiming GST credits on your BAS that you are not legally entitled to.
What it does
This XBert checks supplier payments that include GST and flags them when the supplier is not actively registered for GST. If GST has been included in the payment, XBert raises an alert so you can take action to correct the transaction and avoid claiming ineligible credits.
How it works
XBert reviews payments to suppliers based on the following criteria:
The supplier is active in Xero and matched to the ABR.
The supplier’s GST registration status is not active.
The payment is not deleted, voided, or a draft.
The payment includes GST and was made within the past year.
If the total GST paid to a non-registered supplier meets the alert threshold, XBert triggers this alert so you can validate the transaction.
Example/Use Case
Your business has been paying invoices from a long-term supplier. Recently, the supplier deregistered for GST, but this change wasn’t communicated. You continue paying GST on their bills and claiming it on your BAS. Months later, the ATO audits your return and demands repayment for ineligible GST claims. You now have to recover those funds from the supplier and update your accounting records, creating stress and cash flow issues.
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 ‘Purchases (AP)’ category and supports compliance for BAS reporting. To resolve this issue:
Search for the supplier’s GST registration status using the ABN Lookup service.
If they are not registered, update the supplier’s contact record in your accounting software and change the tax rate accordingly.
Request revised invoices from the supplier that exclude GST.
If GST was paid in error, request a refund or credit from the supplier.
Ensure no incorrect GST amounts have already been claimed in your BAS, and amend if necessary.