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Bill Raised with Supplier Not Registered for GST

Marsha Galicia avatar
Written by Marsha Galicia
Updated over a week ago

XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Purchases

Overview

The "Bill raised with supplier not registered for GST" XBert alerts you when a bill includes GST charged by a supplier who is not actively registered for GST on the Australian Business Register (ABR). This ensures you don’t mistakenly claim GST credits that could result in ATO penalties.

What it does

This XBert reviews bills in your system and identifies cases where:

  • The bill is in Draft, Submitted, or Authorised status

  • The total tax amount is greater than $0

  • The supplier is matched to a real business on the ABR

  • The supplier’s GST registration is inactive or missing

If these criteria are met, the alert is triggered, prompting you to confirm the GST details before proceeding with payment or claiming a GST credit.

How it works

XBert checks each bill against verified ABR data. If a supplier’s ABN is matched, but their GST status is either not active or NULL, and the bill includes a GST amount, the alert is raised. This helps you avoid incorrectly claiming GST in your Business Activity Statement (BAS), which could result in ATO adjustments or penalties.

Example/Use Case

You receive a bill for $2,200 from "ClearView Landscaping", including $200 GST. XBert detects that ClearView's GST status on the ABR is inactive. If you were to pay the bill and include the GST on your BAS, you risk having to pay that amount back to the ATO — especially if this happens across multiple transactions. With XBert’s alert, you catch the issue early and request a revised invoice before it becomes a tax liability.

Accounting software

All major 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 helps protect your business from GST compliance risks. To resolve this issue:

  • Check the supplier’s GST status using the ABN Lookup website.

  • If the supplier is not registered for GST:

    • Request a revised invoice that excludes GST

    • Update the bill in your accounting system with the correct tax rate (e.g., GST-free)

  • If the supplier is registered for GST, ensure their ABN and registration details are correctly recorded in your contact list.

  • Avoid claiming GST from non-registered suppliers on your BAS.

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