Tax Code - no ABN with Statement to not withhold

Question

Hi, anyone know best practice for purchases tax code where Supplier doesn't have an ABN but has provided an ATO Statement to not withhold - 0%.

(E.g. they are an individual under 18 years and the payment does not exceed $350 per week.)

Note, I can't find any advice on ATO website for how to report purchases for this special case (not withholding) of non ABN suppliers.

MYOB tax code covers the Not Registered 0%, but is described as "Used to record purchases from suppliers who have an ABN but are not registered to collect GST" so not entirely accurate.

Earl_HD · Accepted Answer

Hi @NFP_Dea,

For this type of issue, we recommend reaching out to an accountant for an accurate answer. But to give you an idea, if the supplier doesn’t have an ABN but has given you an ATO statement saying no withholding applies, the best way to handle it is:

Use the N-T (Not Reportable) tax code – This keeps it clean and avoids any GST or withholding issues.

You could also use "Not Registered 0%" (NTR) – Even though it's meant for suppliers with an ABN but no GST registration, it still works for this situation.

Regards,
Earl