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Business Tax Tip – How to Correct GST errors

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Published on Thursday, 01 August 2019 10:22

The Australian Tax Office (ATO) site has information on what to do when you find you have a GST error correction to make – and how to put it right in a way that is easier than revising a prior statement, as well as you can save penalties (see how the ATO is really NOT your business enemy!) –

AT the ATO Correcting Errors page -

If you make a mistake (that fits the definition of a GST error) when reporting GST on an activity statement, you can correct that error on a later activity statement if you meet certain conditions.

The benefit of correcting a GST error on a later activity statement is that you will not be liable for any penalties or general interest charge (GIC) for that error.

Generally, it is easier to correct a GST error on a later activity statement than to revise an earlier activity statement. Revising an earlier activity statement that contains an error can incur penalties or GIC.

Find out about:

• Definition of a GST erro
• Correcting GST errors
• Completing your activity statement to correct GST errors
• GST errors that cannot be corrected on a later activity statement

See also:

• Revising an earlier activity statement
• GST definitions

*Definition of a GST error

A GST error is a mistake you made in working out your GST net amount on your activity statement that would, if it was the only mistake that you made, result in you reporting or paying too much GST (credit error) or reporting or paying too little GST (debit error).

To be included in the definition of a GST error, the mistake must relate to an amount of GST, GST credit or GST adjustment. The GST error is the amount of GST, GST credit or GST adjustment and not the gross or GST-inclusive price of the transaction.

A GST error does not include an error that relates to an amount of fuel tax credit, wine equalisation tax or luxury car tax.

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

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