Client who does not need to register for GST

[AlanT]

Hi All,

Just after some opinions here, I have a new client (sole trader, ABN registered but very small turn over and not registered for GST) that I am setting up on AccountRight Basics. As they are GNR, how would you set up their GST codes. 

1. Change every account in the chart of accounts to N-T or

2. Edit the GST tax rates and set to 0%.

Your thoughts please.

Regards,

AlanT

[Neil_M]

HI @AlanT 

Out of curiosity, is there any particular reason that they can’t use the appropriate tax codes like N-T or other zero-rated codes on their transactions?

In terms of changing all the tax codes on all of the accounts, if this file then became registered for GST in the future, all of those accounts would potentially have to be changed back to what they were previously. This could cause issues if some got missed or assigned the wrong tax code

As I'm not a tax accountant, Im only speaking in the context of what could impact the software and its ability to calculate figures

[Elizabeth_Adamson]

Personally I would change the GST rate to zero just in case the status changes later. I am not an accountant so this is just my personal preference and should not be deemed as official advice.

Cheers

Liz

[GDay53]

@AlanT 

Welcome to the MYOB Community Forum, I hope you find plenty of useful information.

I agree with @Neil_M  the best way to go is change the Tax codes in the Chart of Accounts and leave the individual Tax Codes set to the correct rates.

[AlanT · Accepted solution]

Hi All,

Thanks for your opinions.  I ended up changing all the accounts in the chart to N-T, which was a pain and took a lot of time.  Fingers crossed that the client does not soon register for GST and I have to change them all back, but if I do need to, I will probably export the chart of accounts as a csv file and update it in Excel then import it back in.

It is disappointing that AccountRight does not have the option to set the business as not registered for GST (as Essentials does).

My original thoughts about just setting the GST amount to 0% is probably what I would do if this situation arises in the future.

Regards,

AlanT