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Net GST refund received

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  • #9062

    Enals
    Participant

    Hi, received a “net GST refund amount” back into my funds back account. Does anyone know how to enter this money received into Mclowd? Is it classed as an income.

    Cheers

    #9085

    BOS
    Participant

    Hi,

    Please identify where you have recorded the opening receivable of GST and then record via journal entry by Db bank and Cr receivable account.

    Regards
    bos

    #9113

    BOS
    Participant

    Hi
    GST refund is not an Income.
    You would need to treat ATO as a debtor , who owes you refund of the GST you paid on some of the SMSF expenses.
    For example – If you paid $ 1100 as strata fee , that had $ 100 GST to be claimed from ATO.
    In the first instance you would record a payment- :
    Dr Expense Investment expenses $1000
    Dr Sundry Debtor ATO ( Debtor – value equal to GST) $100
    Cr BANK $1100

    When you file your BAS and obtain a refund of the $ 100 ,

    You would record a journal-
    Dr Bank $ 100
    Cr Sundry debtor (ATO) $100

    Trust that clarifies

    BOS

    #9135

    Enals
    Participant

    Thanks Bos.

    The payment to tax office is not due until Feb2017 which include supervisory levies etc for my first year and GST. So before I have to pay these I get net GST refund. Is not an income, it is a negative expense that I have not yet entered into Mclowd. Mclowd won’t allow a negative expense against an expense. I cannot enter the future liability.

    Should I wait until the Feb17 tax is paid and then do the journals as you kindly advised?

    Thanks for your help, Peter

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