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Activity Statement - Add item 7A to track deferred GST

Started by Don Grgic -   in Feature Requests | Submitted

When importing goods we need to track any deferred GST and enter it as a seperate line item in our BAS. At the moment there is no method for tracking this except using either the unified GST account or utilising a clearing account which ends up being a workaround.
Feature request is the inclusion of item 7A into the Activity Statement and a method to track this specific item so it self populates on the Activity Statement Report.
Best Reply as chosen by Don Grgic (Original Poster)
I input the Deferred GST (DGST) from the ATO Portal into the Deferred Company/Fund Instalment field 7 as there is no field 7A. I don't use field 7 so this makes by BAS in Xero show the correct balance.

This liability amount should match the amount you are reporting as an input tax credit for the GST paid on purchases from overseas supplies.
As a result, the ATO liability will cancel the input tax credit resulting in no payment required to the ATO.

Once you have the Customs Entry form N10 you're entitled to claim a GST credit (ATO, search QC16237). As the Customs value likely differs from the actual rate of exchange for goods purchased I create a Bill to ATO with the value of the DGST showing on the N10. Code this to account 820 GST, tax rate GST on Imports so that it shows separately in the GST Audit Report.

Creat an account in the Chart of Accounts (CoA) for Deferred GST on Imports. Enable payments to this account. Pay the DGST Bill to the ATO from this acount. This will park the value in your CoA, and give you a credit for GST in your BAS.

When you pay the BAS to the ATO enter a Spend Money transaction with a separate line for the DGST from the DGST account, BAS Excluded, and another for the usual GST payment (negative for a refund amount). This Spend Money should now balance with your BAS.

The effect is you can track your DGST in your CoA correctly as the Bill and Spend Money should reconcile to zero.
 

Merv Skinner