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How Do I Set Up Taxes In Australia?

This topic explains how to set up GST (Goods and Services Tax) for use in Australia. Australia have a tax system based on a 10% GST. Under this tax system, costs can be entered as exclusive or inclusive of GST. Sell prices include GST.

First of all you must define the basic settings for the system.

1

Select the System Settings task from the Main Menu.

2

On the Defaults tab, select the Tax System to GST.

3

Go to the Purchase Tax option and select 'GST'. The Purchase Tax is the rate of tax you will pay when you purchase items. Go to the Sales Tax option and select 'GST'. The Sales Tax is the rate of tax you will charge the customer when you sell items.

4

When proposing sell prices, you can set up rounding rules which will round the sell price to the nearest 99 cents (or whatever you want). If you want to use this feature then check the Use Rounding Rules option on. If you don't want to round the sell prices then you would check the option off.

5

If you buy wine for resale, you will be charged WET (Wine Equalisation Tax). This is an extra component in the cost. If you don't sell wine then check off the Do You Need To Use Wine Equalisation Tax? option off so you don't see any reference to it. If you do sell wine then you should check the option on.

6

The Transition End Date and Cost Savings % are only required for sites which were installed before GST was introduced.

7

Go to the Withholding Tax Rate and select 'WITH'. This is the tax rate used when withholding payment from suppliers who have not provided their ABN.

As you add new items, using Items, the system will automatically take the default Purchase Tax and Sales Tax codes and assign them to the item. If you are checked on the Do You Need To Use Wine Equalisation Tax? option and the item is subject to WET, you need to manually set the WET tax code in the Supplier Details grid to 'WET'.

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