Applying GNR (GST - Non Registered) Error
Hello,
I provide IT consulting services to a company. I also sub-contract an offshore software engineer to the company.
When I create the monthly invoice for the company, I have two line items in the invoice.
- One line item for my fees, with the tax code "GST" (I am tax registered)
- One line item for the offshore sub-contractor, with the tax code "GNR" (GST - Non Registered, as he is offshore / Canada)
However, Myob will not allow me to save the invoice. It shows the error "Import Duty and Input Taxed are invalid tax types for sales".
The only way I can save the invoice without applying GST to the offshore sub-contractors fees is by assigning his line item with a Tax Code of either:
- FRE - GST Free
- N-T - Not Reportable
I would have thought a tax code of "GNR - GST - Non Registered" would be the most apropriate one to use ? Or am I doing this all wrong ?
Hi haydenp,
Thanks for sending the screenshot. The GNR tax code in MYOB is for purchases, so it won’t work on a sales invoice. That’s why you’re getting the “Import Duty and Input Taxed are invalid tax types for sales” message. Using either of the tax codes you mentioned is the right way to save your invoices. If you want to be extra sure, it’s a good idea to run it past your accountant. Here’s a link with a quick overview of what each tax code is for.
Cheers,
Princess
