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Free Accounting Software Forum - Tax codes on purchases

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27/06/2014
Hi, I'm trying to add in my purchases over the last year. My question is what tax code do I need to set up for purchases where I have paid GST? like entertainment? also, do I need a separate tax code for overseas purchases where I did not pay GST or can I use the GST not applicable code?
Thanks so much and for the service!
17/08/2014
You should only enter it as a GST Taxable purchase if you are entitled to claim the GST. That means you need to be registered for GST, it needs to be used in your business, you need a valid tax invoice. Basically when you enter it as a GST Taxable Purchase the GST gets claimed on the BAS.

So if it's something like entertainment you may not be able to claim the GST so even if it has GST included enter it as "GST Not Applicable"
 

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