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Sep 28, 2019 3:17 AM UTC
Question

How do I report a nett payment ( tax taken out ) correctly?

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1 reply

Sep 28, 2019 6:06 AM UTC

Hello mikeyquick,

 

When recording the payment, you can select a tax rate to use for calculations. You can set a default one for all the transactions, too.

  • Exclusive of Tax - the amount is the basis of the tax calculation.
    For example, 500 + 10% tax rate.
  • Inclusive of Tax - the amount already includes the tax amount.
    For example, 500 is the total amount (454.55 + 10% tax rate).
  • Out of scope of GST - doesn't calculate tax.

 

I'd also recommend reaching out to your accountant about this. They can give you ideas on how to record your payments.

 

If you're referring to something else, additional details would be much appreciated.