Lyon Solutions - Keeping Tax Under Control

Goods and Services Tax (GST)

Australian GST is an indirect consumption tax levied on the supply of goods and services, similar to value-added taxes (VAT) in other countries.

For compliance purposes, GST is normally captured at the point of entry into a company's finance systems via the accounts receivable, accounts payable, fixed asset registers and other sub-systems.

GST is payable, or refunded, monthly, quarterly or annually, depending on the size of the business.  GST returns are lodged as part of a company's Business Activity Statement (BAS).

One of the key challenges for businesses is completing their BAS efficiently by automatically importing the data from source finance systems.

Companies that operate in an industry that makes input taxed supplies, such as banks, insurance companies and property companies, need to have efficient processes and systems to apportion credits for GST on purchases.