Your Business Activity Statement (BAS) reports the GST you’ve collected and the GST credits you can claim. Small errors can mean paying too much tax — or missing out on refunds. Recently, we helped a client recover a $9,000 GST refund they had missed because their BAS was lodged incorrectly.
1. Missing GST credits on eligible purchases
If your business is registered for GST, you can usually claim GST credits on business purchases that include GST. Forgetting to record purchases, or coding them as GST-free, means you pay more than you need to.
2. Using the wrong GST codes
Some items are GST-free (such as many basic foods, bank fees and some health services) while others include GST. Coding everything the same way gives you the wrong result.
3. Claiming without a valid tax invoice
For purchases over $82.50 (including GST), you generally need a valid tax invoice to claim the GST credit. Keep your invoices organised and stored securely.
4. Mixing private and business expenses
Only the business portion of an expense can be claimed. Mixing personal and business spending in one account makes mistakes much more likely.
5. Not reconciling before you lodge
Lodging a BAS without reconciling your bank accounts and accounting software is one of the most common causes of errors. A quick reconciliation catches missing or duplicated transactions.
Already lodged an incorrect BAS?
Mistakes can often be corrected. We can review your previous BAS lodgements, identify missed GST credits and correct them so you receive what you’re entitled to.
Need help? Talk to UV TAX
UV TAX is a registered tax agent with offices in Truganina and Point Cook, helping clients across Australia. Call 0466 268 405 for a free consultation and a free fixed quote.
Related: BAS & GST · Bookkeeping · Success Stories · GST Calculator
This article is general information only and does not take your personal circumstances into account. Please contact us for advice about your situation.