The ATO has warned taxpayers that it has identified 5 of the most common errors made when reporting GST. These errors make up more than half of overall corrections made to GST reporting and in most cases, the mistakes are due to taxpayer error. When reporting GST, the ATO says taxpayers should:
1. Make sure the timing is correct, and report for the correct tax period;
2. Check the figures to avoid accidental miscalculations and simple transcription errors;
3. Ensure they can substantiate their claims for GST credits;
4. Check there is a creditable purpose, as no claims are available re GST for goods purchased for personal use;
5. Make sure taxpayers charge GST when they need to, including businesses that may not realise they will pass the $75,000 GST threshold.
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