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user61842
September 30, 2020
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What do you use the "Out of Scope" gst category for? Can you give some examples?

  • September 30, 2020
  • 1 reply
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Best answer by Ken - Product Champion

Hello user61842,

 

When it comes to definitions of the GST codes that are available, we can do our best to assist and provide general information.

 

However, as examples become more specific and inquiries fall closer to asking which tax code should be used for a specific transaction, we advise to contact your accountant or tax professional.

 

-Ken

1 reply

K
Ken - Product Champion
September 30, 2020

Hi user61842, 

 

When it comes to 'Out of Scope', these transactions are not subject to GST, nor are they to be reflected on your BAS.

 

For example, if you had two different bank accounts and you transferred money between them, they would be classified as 'Out of Scope'. Another example is the payment of your BAS after you have lodged it to the ATO.

 

If you wish to differentiate between Out of Scope code and GST-free, consider an item that uses the latter, such as when you purchase some fresh produce items. That item will need to be reflected on the BAS, but it does not incur GST because of the ATO classification it falls into.

 

-Ken

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user61842Author
September 30, 2020

Thanks Ken,

I have noticed that when you buy from overseas, some companies apply gst and others don't.

For those that don't, are those purchases classified as "Out of Scope"?

K
Ken - Product ChampionAnswer
September 30, 2020

Hello user61842,

 

When it comes to definitions of the GST codes that are available, we can do our best to assist and provide general information.

 

However, as examples become more specific and inquiries fall closer to asking which tax code should be used for a specific transaction, we advise to contact your accountant or tax professional.

 

-Ken

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