Balance Sheet reporting of GST balances

Bean_Counter

My client is an NFP charity which invariably receives refunds of GST each reporting period because GST paid on purchases always exceeds GST collected on revenues. I want to report "GST Recoverable - net" as a current asset, not as a negative liability. How can I achieve this? Is there a linked account that can be changed?

CloverQ

Hi @Bean_Counter 

 

Typically any refunds from ATO is recorded manually with the relevant allocation accounts, there isn't a linked account setting for receiving ATO refunds. Please find the detailed instructions on recording the refund from this Help article: Recording ATO payments and credits (Australia).

 

GST collected and paid are tracked using liability accounts, we do recommend checking with your accountant or ATO whether the GST refunds can be treated as an asset. If yes, an asset account can be created and used to record the ATO credits into, general journal entries can also be used to move balance across.