Completing your activity statement
You may use either the calculation worksheet method or the accounts method to complete the relevant boxes on your activity statement for the reporting period.
The amounts you report on your activity statement will depend on the accounting basis you have chosen, or are required to use. You can account on a cash basis or a non-cash basis.
Account for GST when using the margin scheme
You need to account for GST when using the margin scheme as follows:
If you sell property and have chosen to use the margin scheme, you only report the amount of the 'margin' on your sale at G1 (total sales). Do not report the full amount of payment you receive.
If the margin is nil (or a negative amount), do not report any amount at G1 (total sales).
If you are using the accounts method, report the amount of GST on your margin at 1A (GST on sales). If you are using the calculation worksheet method, use the worksheet to calculate the amount of GST to report at 1A (GST on sales).
If you buy property and the GST included in the price you paid was worked out using the margin scheme, you are not entitled to a GST credit for the purchase. Do not report the amount of your payment for the purchase at G10 (capital purchases) or G11 (non-capital purchases).
Do not report any GST credit for the purchase at 1B (GST on purchases).
Last modified: 24 Jun 2016QC 18646