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ATO BAS REFUNDS

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Experienced User Debbiesap
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Debbiesap
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ATO BAS REFUNDS

How do I record GST refunds from the ATO and which tax codes would I use.
 
I have currently recorded as per the below screeen shot:
 

 
 However, when I run the company auditor report the following message is shown:
 

 
I am assuming that this is ok but would appreciate confirmation. Additiinally does it have any bearing when doing my BAS recon against the GL tax collect/paid accounts
 
We report on a quarterly cash basis.
Thank you
ato refund.JPG
3 REPLIES
Ultimate Partner DuncanS
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DuncanS
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Re: ATO BAS REFUNDS

@Debbiesap

 

When I prepare a April - June BAS, I create a ledger called BAS April - June xx.

Many Tax Accountants/BAS Agents/Business Owners.do not undertake this step.

If it were me, I would do a Journal for the Components on the April - June BAS to a ledger called BAS April - June xx. As the BAS has a refund, it would appear as a Current Asset.

 

The Tax Codes for Components of a BAS are N-T.

 

It is important to reconcile the GST Reports and Payroll Reports to the Balance Sheet every time a BAS/IAS is prepared. Have a look on the Forum for my GST Checklist.

 

Let me know how you go.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
Ultimate Partner GDay53
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GDay53
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Re: ATO BAS REFUNDS

@Debbiesap

 

I do something similar to @DuncanS.

As a BAS Agent i have acces to my clients ATO Integrated Client Account which tells us exactly how much they owe to the tax office at any one time. I treat this the same as a Bank / Creit Card account.

I create a Liability Account immediately after the GST Collected and GST Paid accounts in the Liability section of the Chart of Accountsand call it the ATO ICA account and make it a Credit Card type.

When it is BAS / IAS time I create a Journal entry to move the GST Collected / Paid, the PAYG, The PAYGI, Fuel tax Credits and anything elese that has to be included, into the ATO ICA. GST Collected is always a Debit and GST Paid is always a Credit. The last line entry for the Journal is to the ATO ICA and the amount should balance the Journal and if you owe the Tax office it will be a Credit or if you are getting a refund it should be a Debit.

When it is time to actually pay the ATO or receive the refund you simply do a Spend or Receive Money from the Bank account to the ATO ICA account.

I also download a statement from the BAS Agents portal and reconcile the ATO ICA account like any other bank/credit card account.

Graeme Day
Registered BAS Agent #24745540
First Class Accounts Clayfield
Mobile: 0402 841 627
gday@firstclassaccounts.com
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Ultimate Partner DuncanS
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DuncanS
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Re: ATO BAS REFUNDS

@Debbiesap @GDay53

 

Gavin gave you a good explanation.

I come across business owners accounting software where the GST Liability Accounts have not been reconciled in MYOB for many years - some since GST started in July 2000.

 

From a review perspective, I believe it is important to reflect the BAS April - June as a separate account name to the ATO ICA.

To my knowledge and, I wonder why, the Standards Board or industry bodies have not given guidance on this.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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