XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: Australia only
Risk Type: Tax Risk
Business Function: Purchases
Overview
This XBert checks the suppliers you have paid GST to and confirms each one was actually registered for GST at the time of the bill. It matters because you can only claim a GST credit on your BAS when the supplier was registered for GST. If you claim GST that the supplier was not entitled to charge, the ATO can disallow the credit and ask for the money back.
What it does
XBert looks at your supplier bills that you have paid and that include GST. For each one, it checks the supplier's ABN against the Australian Business Register (ABR) and its GST registration history. It then compares the date of the bill with the dates the supplier was registered for GST. If you paid GST but the supplier was not registered for GST on that date, XBert raises this alert so you can review and correct it.
How it works
XBert raises this alert when all of the following are true:
The bill includes GST and the payment to the supplier has been authorised (it is not a draft, voided, or deleted bill).
The supplier has been matched to a business on the ABR using their ABN.
According to the ABR's GST registration history, the supplier was not registered for GST on the date of the bill.
The payment was made on or after the start of your current financial year.
XBert deliberately ignores some cases to avoid false alarms. It does not raise the alert when the supplier was registered for GST on the bill date, when XBert has no GST registration history on file for that ABN (so it cannot be sure either way), or when the ATO is the matched supplier. It also takes care not to be misled by a scanned receipt or statement attached to the bill, and it sets aside cases where the supplier's name has been matched to a clearly unrelated business so a genuinely registered supplier is not flagged by mistake.
Example/Use Case
Priya runs a small cafe and has used the same cleaning supplier, Clean Sweep Services, for two years. Last quarter the supplier cancelled their GST registration, but they kept invoicing with GST on the line and Priya kept paying and coding the bills the same way. Over three months she paid $264 of GST that the supplier was no longer entitled to charge, and she claimed it on her BAS. XBert flagged the payments because the supplier's ABN showed no active GST registration on those bill dates. Priya contacted the supplier, confirmed they had deregistered, requested corrected invoices without GST, and adjusted her records before her next BAS, avoiding an unexpected repayment to the ATO.
Accounting software
This XBert runs on Australian-connected accounting software, including Xero, MYOB, and QuickBooks Online.
Which countries it supports
Australia only.
Processes
This alert falls under the Purchases (AP) area and supports accurate GST claims on your BAS. To resolve it:
Check the supplier's GST registration status and the dates of registration using the free ABN Lookup service at abr.business.gov.au.
If the supplier was not registered for GST when the bill was dated, ask them for a corrected invoice that does not include GST.
Update the bill (and the supplier's default tax setting if needed) so the transaction is recorded without GST.
If you have already claimed the GST on a lodged BAS, work out the amount and amend that BAS, or correct it on your next one in line with ATO rules.
If you paid GST that the supplier was not entitled to charge, ask them for a refund or credit.
Once the records are corrected, mark the XBert as resolved.