Setting up GST in QuickBooks Australian version

Software: QuickBooks 2011/12 (Australian version)

Setting up GST code in QuickBooks 2011/12 (Australian version) is similar to the QuickBooks (Canadian). You need to setup Tax account, Tax Agent, Tax item and Tax code accordingly.

Tax Account

First, you need to setup the Tax account from your chart of account. Tax account is an Other Current Liability type of account; usually, I name it as GST Payable. This account will be used to track both the input and output tax.

Tax Agent

From the Supplier centre, add a new Tax Agent, IRAS (GST). You need to select the checkbox for “Supplier is a Tax Agency” so an additional tab, Tax Agency Info, will be displayed for you to fill up the GST detail.

In the Tax Agency Info, you need to fill in the information for Period and Period Ending according to your Tax requirement. Besides, you need to select the Tax account (GST Payable), which you have created earlier in both “Track tax on purchase separately to” and “Track tax on sales separately to” account field.

Tax Item

From the Lists menu, select Tax Item List to start adding your Tax item. Assuming you need to add a 7% Standard rated GST item, in the Tax item profile you enter:

Name: 7G-P (P for Purchase)

Description: 7% GST Input

Tax Rate (%) or Amt: 7.0%

Tax Agency (Supplier that you collect for): IRAS (GST)

Select “Use this item in purchase transactions” checkbox (if you create this code for GST input tax)

Tax Return Line: Goods and Services Tax

Create another Tax item, 7G-S, for 7% GST Output tax.

Tax Code

The last thing you need to set is the Tax code. From the Lists menu, select Tax Code. Add a new Tax Code, 7G, to group both 7G-P and 7G-S Tax item together. Enter the information for the Tax Code as:

Tax Code: 7G

Description: 7% GST

Purchase Tax Item: 7G-P

Sales Tax Item: 7G-S

This code will be used in your transactions such as Invoice, Bill, or Write Cheque.