What to do when contracts, sales or purchases are canceled

With the uncertainty in the current marketplace, you may have had contracts or sales fall through or purchases refunded or cancelled and have to make goods and services tax (GST) adjustment.


You should make a GST adjustment when:

  • The price of a taxable sale changes

  • Taxable sales are canceled.


Tips for adjusting your GST

GST must have been reported in a previous activity statement – there's no need to report an adjustment if the event occurs in your current reporting period.


Check paid invoices to find out if you paid GST, how much you paid and when.


Make your adjustment:

  • For the amount paid in each previously lodged activity statement – if you're accounting for GST on a cash basis

  • In the activity statement period you become aware of the adjustment – if you're accounting for GST on an accruals basis.


Sales of new residential property

If settlement has fallen through on a new residential property sale or the settlement date has been changed, purchasers may need to cancel or amend your GST at settlement forms.


MORE INFORMATION:

For the latest advice, information and resources, go to https://www.theguardian.com/australia-news

Feel free to contact us at office@gordondu-associates.com.au or (08) 9345 0499.


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