XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: Australia only
Risk Type: Tax Risk
Business Function: Purchases
Overview
This XBert checks Spend Money bank transactions that include GST and confirms the supplier was actually registered for GST on the day you paid them. If a supplier was not registered, you should not be claiming a GST credit on that payment. Catching it early helps you avoid an incorrect BAS, ATO adjustments and the cash-flow hit of repaying credits later.
What it does
This XBert scans the Spend Money (direct bank payment) transactions in your accounting software where you have recorded a GST amount. For each one, it identifies the supplier you paid, matches them to the Australian Business Register (ABR) by their ABN, and checks whether that ABN was inside an active GST registration period on the date of the transaction.
How it works
The XBert reviews Spend Money transactions from the start of your current financial year up to today. It only looks at transactions that:
are authorised Spend Money (direct bank) payments, not bills, supplier invoices or money received;
include a GST amount (the tax is greater than zero); and
are matched to a supplier by an exact ABN match.
It then compares the supplier's GST registration history on the ABR against the date of the transaction. The alert is raised only when the supplier's ABN was not within an active GST registration period on the day you paid them.
To keep the alert accurate and avoid false alarms, this XBert deliberately ignores a transaction when:
the supplier's ABN was registered for GST on the transaction date;
an ABN found on the attached document or receipt was registered for GST on that date, even if another ABN on the same transaction was not;
the supplier is the Australian Taxation Office or another excluded business;
there is no GST registration information on file for the supplier yet, in which case XBert waits and re-checks rather than guessing; or
the transaction is voided, deleted or not yet authorised.
Because registration is checked as at the transaction date, a supplier who later cancelled their GST registration will not be flagged for payments you made while they were still registered.
Example/Use Case
Priya runs a small landscaping business and pays a sub-contractor, Hilltop Earthworks, directly from the bank account. Each payment of $1,650 is coded with $150 GST so she can claim it back on her BAS. Hilltop cancelled their GST registration three months ago but kept issuing invoices that still showed GST. XBert matches Hilltop's ABN to the ABR, sees they were not registered for GST on the payment date and raises this alert. Priya contacts Hilltop for a corrected invoice with no GST, fixes the coding so the $150 is no longer claimed, and avoids having to repay the credit after an ATO review.
Accounting software
This XBert runs on the major Australian-compatible accounting platforms, including Xero, MYOB and QuickBooks Online.
Which countries it supports
Australia only.
Processes
This alert sits within your Purchases (accounts payable) process and helps ensure GST is only claimed when the supplier was entitled to charge it. To resolve it:
Check the supplier's GST registration on the ABN Lookup service (abr.business.gov.au) for the date of the payment.
If the supplier was not registered for GST, request a corrected invoice or receipt that does not include GST.
Update the supplier's tax settings in your accounting software so future payments are coded correctly.
Correct the Spend Money transaction so the GST is removed and the full amount is treated as GST-free.
If GST was already claimed on a lodged BAS, speak with your accountant or bookkeeper about lodging an amendment.
Where appropriate, request a refund or credit from the supplier for any GST charged in error.
Once the transaction is corrected, mark the XBert as resolved.