Common errors

The table below is based on recent statistics and identifies common examples and types of GST reporting errors made by small and medium businesses.

Area of error

% of total small business errors

% of total medium business errors

Types of errors

BAS preparation



  • Transposition errors
  • Claiming GST credits without a valid tax invoice
  • Not including invoices produced outside normal accounting systems
  • Attributing invoices to the wrong BAS

Incorrect set up of accounting systems or internal controls



  • No agreement between entities in relation to recipient created tax invoices
  • Excluding online sales from supplies
  • Accounting on cash instead of accruals
  • Issues during a merger when trying to integrate different systems

Communication between related entities



  • Incorrect transfer of GST information between associated entities
  • Not applying reverse charges on advisory services in connection with an offshore related entity
  • Incorrectly treating invoices paid for on behalf of related entities as invoices for creditable acquisitions

Incorrect supply status



  • Incorrectly classifying the GST status of government rebates
  • Early termination fees on contracts
  • Travel and entertainment expenses
  • Insurance settlements
  • Car parking supplied to staff (FBT)
    Last modified: 16 May 2014QC 23370