XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Spend Money Transaction Not Registered for GST" XBert identifies payments made via bank transactions (spend money) to suppliers who are not registered for GST. This alert helps protect your business from claiming ineligible GST credits in your BAS, which could result in compliance issues and ATO repayments.
What it does
This XBert scans spend money transactions in your accounting software and flags those that include GST amounts paid to suppliers who are not actively registered for GST according to the Australian Business Register (ABR). It helps ensure that GST is only paid — and claimed — when the supplier is authorised to collect it.
How it works
XBert performs the following checks:
Identifies active suppliers matched to the ABR with non-active GST status.
Analyses spend money transactions (not bill payments) that:
Include a GST component.
Occurred within the last year.
Are not deleted, voided, or drafts.
Calculates the year-to-date GST paid to each flagged supplier.
Raises an alert when the GST paid to a non-registered supplier reaches $10 or more.
Example/Use Case
Your business has been paying Supplier XYZ through bank transactions, expecting to claim the GST back on your BAS. Unknown to your team, the supplier is no longer registered for GST. After an ATO review, you’re asked to repay the ineligible GST claims. You now must contact the supplier for revised invoices or a refund, causing delays and tying up business cash.
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)’ process and helps ensure accurate GST treatment on direct spend transactions. To resolve this issue:
Verify the supplier’s GST registration using the ABN Lookup service.
If the supplier is not registered, update their tax settings in your accounting software.
Request revised invoices or supporting documentation that exclude GST.
Adjust the relevant spend money transaction to remove GST if necessary.
If GST was incorrectly claimed on a previous BAS, consider lodging an amendment or contacting your advisor.
Request a refund or credit from the supplier for any GST paid in error.