XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: Australia only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Tax on Attachment Not Claimed" XBert finds bills where the attached tax invoice shows a GST amount, but the bill recorded in your accounting software has no tax on it. This usually means GST that you could claim has been missed, which reduces your BAS refund and overstates your costs.
What it does
XBert reads the document attached to a bill, picks out the GST figure shown on it, and compares that to the tax actually entered on the bill. When the document shows GST but the bill records none, XBert flags the bill so you can check it.
How it works
XBert raises this alert only when all of the following are true:
Your own business is registered for GST.
The bill is in Australian dollars and has a single attachment.
The bill's total tax is recorded as $0, but a GST figure was read from the attached document.
The GST figure on the document is a realistic amount of GST for that bill total. Australian GST is one-eleventh of a tax-inclusive total, so XBert only flags the bill when the figure on the document sits close to that ratio. This deliberately ignores figures that could not possibly be the GST (for example, a $9.00 "GST" read from a $9.90 bill), which are usually misreads of a different number on the document.
The supplier was registered for GST on the date of the bill, checked against Australian Business Register records. Bills from suppliers who were not GST-registered are ignored, because there is no GST to claim.
The bill is coded to an expense account, and the tax setting on the line does not match the tax setting expected for that account – a sign the GST was left off.
XBert deliberately skips draft, voided and deleted bills, bills paid to the ATO, and reimbursements.
Example/Use Case
Joe receives a $1,320 invoice from a GST-registered office supplier, including $120 of GST. He processes it quickly and codes it to a no-tax account without opening the attached invoice. XBert reads the attachment, sees a valid $120 GST figure that matches the bill total, and confirms the supplier was GST-registered on that date, so it flags the bill.
If Joe had not been alerted, his business would have missed claiming $120 in GST, reducing his BAS refund and quietly increasing his costs. He opens the bill, applies the correct GST tax code, and the claim is recovered.
Accounting software
This XBert runs on Xero, MYOB and QuickBooks Online.
Which countries it supports
Australia only.
Processes
This XBert is part of the Bookkeeping – Purchases (AP) business area. To make sure your GST is claimed correctly:
Open the flagged bill and view its attached invoice.
Check the GST amount shown on the document and confirm it is genuine GST, not another figure.
Confirm the supplier is registered for GST and that the purchase is one you can claim GST on.
If GST applies, update the bill with the correct tax code so the GST is claimed.
If GST should not be claimed for this purchase (for example, entertainment or a private expense), leave the bill as it is.
Once you have reviewed and corrected the bill, mark the XBert as resolved.