Forum Discussion

DougX19's avatar
DougX19
User
3 years ago
Solved

GST return error

Just trying out AccountRight Basic PC edition, and found an issue. Can replicate the issue with a new blank demo file. Just added theses 3 expenses in. Exspense 1 $14.14 incl GST Exspense 2 $11.0...
  • Steven_M's avatar
    Steven_M
    3 years ago

    Hi DougX19 

     

    The difference is caused by the way in which the GST Return compiles its information. It will take the tax amount and works its way up the form. So it takes the GST amount i.e. 4.95 and multiples that by 23 then divides by 3. This is opposed to gathering the total amount multiplying by 3 then dividing it by 23. 

    My understanding is that this the way the IRD has indicated that the form should work. The key values on that report being the tax amounts, the total purchases and expenses being minor values that can be subjected to minor deviations in amounts (typically a few cents).

Steven_M's avatar
Steven_M
Former Staff
3 years ago

Hi DougX19 

 

The difference is caused by the way in which the GST Return compiles its information. It will take the tax amount and works its way up the form. So it takes the GST amount i.e. 4.95 and multiples that by 23 then divides by 3. This is opposed to gathering the total amount multiplying by 3 then dividing it by 23. 

My understanding is that this the way the IRD has indicated that the form should work. The key values on that report being the tax amounts, the total purchases and expenses being minor values that can be subjected to minor deviations in amounts (typically a few cents).