Common errors when accounting for GST

What records do you need to keep for GST?

Errors commonly occur when it comes to record keeping for GST and many businesses don't keep all the records they need to. These errors can lead to other errors down the track such as not reporting the correct amounts of GST or claiming the wrong amount of GST credits. If you don't report the correct amount of GST, or over claim GST credits, you may have to pay penalties or interest.

If you are registered for GST, you must keep your source records, particularly source records for all sales.

You should also keep records of:

• all your sales and purchases and whether they were taxable, GST-free or input taxed
• tax invoices issued to you for purchases of $82.50 or more - if you are claiming GST credits
• any documents from the Australian Customs and Border Protection Service.

You should keep these documents for five years.