When To Lodge An Amended BAS
First, we distinguish the difference between an error and an adjustment.
An error or mistake is something to do with an amount that was incorrect at the time of lodgment while an adjustment relates to an amount that was correct at the time of lodgment but changes happen later on that affect the amount of GST reported.
Mistakes like clerical error, and interchange of GST codes instead of using GST-free for a purchase or sales transactions you recorded us taxable or with GST and vice versa, or recording duplicate transactions. These errors are fixed on your next BAS or revised in the original one depending on the type of error and its value limit.
There are two types of GST errors, credit and debit errors.
These errors cannot be corrected in your next BAS if the GST error belongs to a reporting period that is subject to compliance activity by the ATO or if the error relates to the transactions subjected to compliance activity. A record must be maintained related to the corrections done.
Credit errors are not subject to value limit but the debit error is. Check out the ATO website for the Debit error value limit that corresponds with your company’s current GST turnover.
Adjustments, on the other hand, are generally done during the current reporting period.
A few examples of adjustments in sales:
- Returned taxable sales that cause you to refund a customer.
- Changed in the price of taxable sales due to rebates given to the customer.
- Goods that are recorded as export sales and were not exported at all.
A few examples of adjustments on purchases:
- You return a taxable purchase to your supplier and they made a full refund to you.
- Changed in the price of the taxable purchase due to rebates given to you by your supplier.
No adjustment is necessary if the affected reporting period is not yet lodge and all you have to do is correct the existing Sales or Purchase transactions like adding entries of credit or debit memos.
You can contact us anytime with regard to this topic. We are here to help you lessen your burden on processing tax returns.
Yan (Jenny) Qi CA
Founder of Progress CA Pty Ltd
Tel. no. 0403 050 779