Forum Discussion
I am having the same issue. The GST on capital acquisitions as per the GST report is definately not included in the GST on purchases total on the GST return report. Are we supposed to use the GST report to prepare the BAS? If so, what is the point of the GST return report?
Hi Tracy,
We have received an explanation for this. The CAP tax code is only used for capital purchases. Capital sales are recorded with the GST tax code (if GST is applicable). Please refer to response from Tracey_H.
"As explained by @CloverQ, the CAP tax code is used to record Capital Purchases. In the GST return report transactions allocated this tax code are included in G10 and 1B as per the ATO reporting requirements. It's not possible to change the set up of that report."
To be very honest, I have always used the CAP tax code both for the sale and purchase of assets and MYOB AccountRight (desktop) had no problem reporting this correctly for the BAS. I liked seeing both the sale and the purchase of assets showing separately in the GST report. I guess the new systems try to be a bit smarter. A period of confusion before things settle down and we learn to work with the new systems.
Hope this helps.
Veronika