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New Essentials GST Return and GST Report do not match

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Veronika
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New Essentials GST Return and GST Report do not match

Hi, I have generated the GST Report (accrual) which is showing the total sales and purchases correctly for a period, in this case Oct - Dec 2021.  The GST Report (also accrual for the same period) however omits any sales with CAP tax codes.

 

I cannot see anywhere in the settings that this can be corrected.  Could you lease advise how this report can be amended to show all relevant tax codes, or is this an error in the system?

GST Report.png
GST Return.png
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CloverQ
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Re: New Essentials GST Return and GST Report do not match

Hi @Veronika 

 

The GST report lists all transactions recorded based on the tax codes used, while the GST return report shows the GST summary for Activity Statement purposes. 

 

CAP is the tax code used to track capital purchases, the relevant purchase amount is corrected picked up in the GST return report. It is strange to have CAP appear in sales transactions, based on this ATO's page, disposal of capital assets are generally taxable sales so GST needs to be accounted.

 

I'd suggest double check the sales transactions recorded with your accountant or with ATO to determine if a different tax code should be used, or if they should be recorded as negative purchases so they can be correctly reported in the Activity Statement.

Kind regards,
Clover

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stubrady
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Re: New Essentials GST Return and GST Report do not match

Hi Clover,

 

I am expericeing the exact same issue. The GST on capital acquistions (or disposals in this case) is not reporting at G1 or 1A in the GST Return report, but it is in the GST Report. The two GST figures should be exactly the same. and they're not. I have checked the tax codes and they are set up correctly.

 

The CAP tax code is used to track GST on capital acquistions AND sales, but it is not reporting correctly on the GST Return report for sales (it's omiited as Veronika mentioned above).

 

It appears to be a software issue and has nothing to do with the way the transaction has been recorded or the tax codes - if it did then both reports would be out. In my case, the client has recognised the sale of a vehcile correctly, yet the GST is not showing in the GST Return report, but is on the GST Report.

 

Please advise why one report shows a different amount for GST on Sales (1A) than the other.

Ed1
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Re: New Essentials GST Return and GST Report do not match

Hi @CloverQ 

 

I am experiencing the same issue as @Veronika and agree with @stubrady 

 

Everything seems to be setup correctly in the background and your explanation that "the GST return report shows the GST summary for Activity Statement purposes" will result in incorrect activity statements being produced as it is excluding capital disposals. In this instance it would've resulted in the activity statement being incorrect by $18,000.

 

5172 - GST return.PNG
5172 - GST report.PNG
stubrady
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Re: New Essentials GST Return and GST Report do not match

It's now been over two weeks since ED1 posted and this issue still persists. Is there anyone from MYOB who can provide a solution or some information?
Tracey_H
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Re: New Essentials GST Return and GST Report do not match

Hi @stubrady and @Ed1 

 

As explained by @CloverQ, the CAP tax code is used to record Capital Purchases. In the GST return report transactions allocated this tax code are included in G10 and 1B as per the ATO reporting requirements. It's not possible to change the set up of that report.

 

Please let us know if you need further help.

Cheers,
Tracey
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Tracy9
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Re: New Essentials GST Return and GST Report do not match

I am having the same issue. The GST on capital acquisitions as per the GST report is definately not included in the GST on purchases total on the GST return report.  Are we supposed to use the GST report to prepare the BAS?  If so, what is the point of the GST return report?

Veronika
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Re: New Essentials GST Return and GST Report do not match

Hi Tracy,

 

We have received an explanation for this.  The CAP tax code is only used for capital purchases.  Capital sales are recorded with the GST tax code (if GST is applicable).  Please refer to response from Tracey_H.

 

"As explained by @CloverQ, the CAP tax code is used to record Capital Purchases. In the GST return report transactions allocated this tax code are included in G10 and 1B as per the ATO reporting requirements. It's not possible to change the set up of that report."

 

To be very honest, I have always used the CAP tax code both for the sale and purchase of assets and MYOB AccountRight (desktop) had no problem reporting this correctly for the BAS.  I liked seeing both the sale and the purchase of assets showing separately in the GST report.  I guess the new systems try to be a bit smarter.  A period of confusion before things settle down and we learn to work with the new systems.

 

Hope this helps.

 

Veronika

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