<p class=”MsoNormal”>I am at pages 54 and 55 of the manual (about 2:44:37 of Brett’s video) where I need to add tax codes for GST Free Exports (Zheng golf ball purchases) and GST on Capital (for the officeworks printer purchase).</p>
<p class=”MsoNormal”>These are not in the Xero demo company currently so I went to add them. Upon adding new, the dialog box asks for a Tax Type “how this tax rate will be reported in activity statement”. I am not sure which to choose here (the options to choose from are: Sales, Purchases, GST Free Sales, Exempt Income, BAS Excluded and GST Free Expenses – there does not appear to be an option to add here). I have tested out using Sales, and GST Free Sales (for the GST Free Exports) and neither filter to G2 on the BAS. (The Xero version is slightly different than the book and video).</p>
Simple BAS has been introduced by the ATO as of 1/7/2017.
All softwares including Xero have updated to reflect the changes.
If your company turnover is under $10 million you will use simple BAS.
Simple BAS means that you only Use GST on income GST on purchases, GST free Income GST free Purchases and BAS excluded tax rates.
If your turnover is over $10 million you will use full reporting method.
Advanced Tax rate is for full reporting method with use of all tax codes required including Exports, Capital and Input Taxed rates.
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