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GST FREE PURCHASES-EXPENSES (FRE, N-T or GNR) TAX CODE - DEFINITIVE ANSWERS (GST free or N-T)

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Contributing Cover User Fred000
7 Posts
Contributing Cover User
Australia

GST FREE PURCHASES-EXPENSES (FRE, N-T or GNR) TAX CODE - DEFINITIVE ANSWERS (GST free or N-T)

Hi Everyone,

 

In this case the internet and forums have totally made me unsure of what is correct. So I'm hoping I can get a definitive answer on which codes to use and hopefully your answers will help others. Could someone please confirm which GST-FREE tax codes to use for the following. .

 

I currently use NT for the following.

  • Interest (Expense) on credit cards, business loan
  • Annual credit card fees
  • Credit card interest charges
  • Bank account transaction fees
  • Overseas Purchases (ie. purchase of a mobile phone over the internet)
  • Electricity / Gas / Water (I allocate a portion of my home utility bills since I work from home)
  • Stamp Duty portion on Business or Vehicle Insurance
  • Stamp Duty portion on Vehicle Registration
  • Superannuation (To my sub-contractors)

I currently use GNR

  • Sub-contractors (They have an ABN but are not GST registered)

Also

  • I know NT is for non reportable items and that these items are not placed in G11 of BAS, but what does the tax office consider non reporatable?.
  • As with GNR and FRE they seem to mean the same thing. Whats the difference and how does MYOB treat these two codes differently?

Thankyou in advance to your answers.

 

5 REPLIES
Trusted Partner Chuck_Mak
75 Posts
Trusted Partner
Australia

Re: GST FREE PURCHASES-EXPENSES (FRE, N-T or GNR) TAX CODE - DEFINITIVE ANSWERS

Hi Fred,

 

Out of your first list I would only use N-T for superannuation and that is to everyone not just your sub-contractors.  Although I would assume your home electricity and gas would have GST so you would want to use GST there.

 

I personally only ever use FRE to record purchases without GST and that is whether the supplier is registered for GST or not.  However note that by default the GNR in MYOB is set as an Input Taxed supply and not GST Free.  They are not the same thing!   

 

This link to an ATO page regarding G14 should help you decide what the ATO wants reported http://www.ato.gov.au/businesses/content.asp?doc=/content/42132.htm&page=42&H42

 

Good luck! Smiley Happy

 

Chuck

 

 

 

 

Abacus Bookkeeping Centre
(02) 8005 7495
Registered BAS Agent
www.AbacusBC.com.au
Experienced Cover User sunny14
24 Posts
Experienced Cover User
Australia

GST free or N-T

I am confused to choose the tax code for eg. stamp duty, paypal fee, cusotm duty, bank fee, ASIC renew fee, overseas travel fee. Are they GST free or N-T? what is the difference between two? Thank you!

Super Partner JenPerram
444 Posts
Super Partner

Re: GST free or N-T

Hi

 

I always like to use the tax code gst free for items that should be reported on the BAS but do not include GST.  The tax code N-T is for non reportable items i.e. things that are out of scope for reporting.

Jenny Perram
Bookkeeping Express Management
Mobile: 0408 25 1234
Registered BAS Agent
MYOB Certified Consultant
Super Partner PHalls
252 Posts
Super Partner

Re: GST free or N-T

Use FRE for items such as bank charges, ASIC fees etc - anything that is a business expense or deduction that does not attract GST

Use GNR if you are paying a supplier who is not registered for GST

Use EXP for any purchases from  overseas entities- these do not attract GST

Use N-T for transactions suh as drawings, bank transfers, - anything that does not get reported on the BAS

 

Check the ATO website if you're not sure - there is lots of good information there!

Experienced Cover User sunny14
24 Posts
Experienced Cover User
Australia

Re: GST free or N-T

Thank you all for your information.

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