Common accounting and reporting errors

Taxable sales

Most sales are taxable. Your non-profit organisation makes a taxable sale if all of the following apply:

  • it is registered, or required to be registered for GST
  • it receives payment for the sale it makes
  • it makes the sale in the course or furtherance of its activities
  • the sale is connected with Australia
  • the sale is not GST-free or input taxed.

GST applies to all taxable sales.

GST-free sales

GST-free sales include:

  • most health and medical care services
  • most educational services
  • most food and beverages for human consumption (other than prepared foods, confectionary, snacks, ice-cream, biscuits, alcohol, soft-drinks and some other drinks)
  • some activities of charities and gift-deductible entities
  • international travel and transport
  • sales of 'going concerns'
  • some dealings with land
  • exports of goods or services (if certain requirements are met).

GST is not charged on GST-free sales.

If your organisation makes GST-free sales, you may be entitled to claim a GST credit for the GST included in the cost of purchases associated with the sales.

Input taxed sales

Input taxed sales include:

  • financial supplies
  • leasing of private residential premises for rent
  • some transactions involving precious metals.

GST is not charged on input taxed sales.

If your organisation makes input taxed sales, for example, it leases residential premises and collects rent, you cannot claim GST credits for the GST included in the cost of purchases made associated with the sales.

Common GST errors

We have identified a range of common problems people encountered when filling out their business activity statements.

Further information

For more information about common GST errors, refer to:

End of further information
    Last modified: 07 Jun 2013QC 21235