Pick the right tax code on a transaction
What each GST tax code means, where it lands on your BAS, and how to set the default for an account.
Every line on an invoice, bill, bank transaction or journal carries a tax code. It tells Billbook whether GST applies and which BAS box the amount goes in, so the right code means a right BAS.
Which code do I use?
For sales:
- GST on Income: most sales, with GST at 10%.
- GST Free Income: sales with no GST, like most basic food or some medical services.
- GST Free Exports: goods or services you export.
- Input Taxed Income: sales like residential rent or financial services. No GST charged.
For purchases:
- GST on Expenses: everyday purchases with GST you can claim back.
- GST on Capital: equipment and other assets with GST.
- GST Free Expenses: purchases with no GST in the price.
- Input Taxed Expenses: costs of making input taxed sales. You can't claim the GST.
For anything that isn't a sale or purchase, like wages, loans, transfers or money you put in: BAS Excluded.
Not sure?
The supplier's tax invoice shows whether GST was charged. If in doubt, ask your accountant before you lodge.
How do I set the default for an account?
- Open AccountingBooksChart of accounts and select the account.
- Pick its GST default and choose Save changes.
New lines on that account start with that code. You can still change the Tax rate on any line.
Do prices include GST?
On invoices and bills, Amounts are sets it: Tax exclusive, Tax inclusive or No tax. Journals have the same choice.
Next
Do your BAS
Prepare your activity statement from your books, check the figures, lodge it with the ATO and record that it's done.
Set up GST, cash or accrual, and how often you report
Tell Billbook you're registered for GST, which basis you use and how often you lodge a BAS.
Your chart of accounts
See the accounts your money is sorted into, add or rename one, set its default GST and archive the ones you don't use.
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