Ever Tried to Read an Old EFTPOS Receipt?
The Tax office has, and we will give you one guess about what happens if they cannot read the receipt or Tax Invoice.
You Need a Valid Tax Invoice - For ALL Costs over $82.50
To claim a GST credit for your business costs exceeding $82.50 you will need to have a valid Tax Invoice.
A valid Tax Invoice must include enough information to enable the following to be clearly ascertained:
- that the document is intended as a tax invoice
- the seller's identity
- the seller's Australian business number (ABN)
- the date the tax invoice was issued
- a brief description of the items sold, including the quantity (if applicable) and the price of what is sold
- the GST amount (if any) payable in relation to the sale – this can be shown separately or, if the GST to be paid is exactly one-eleventh of the total price, as a statement such as 'Total price includes GST'
- the extent that each sale to which the document relates is a taxable sale.
Tax invoices exceeding $1,000 must also include the Buyers identity or ABN.
Costs under $82.50
Contrary to the BBQ talk or the "Friendspert's" advice, you do need to keep records for low value costs. While you will not need a valid Tax Invoice you will need one of the following:
- a tax invoice
- a cash register docket
- a receipt
- an invoice.
If you are in any way unsure about what records to keep please contact our friendly team before it is too late. Phone us on 07 5439 1600 or CLICK HERE TO MAKE AN APPOINTMENT NOW.
CLICK HERE for Information on Other Small Business "Friendspert" mistakes.
Now you Know What to Keep - How Can you Best Keep These Records?
Remember it is YOUR obligation to keep the records. If you are audited, it is not sufficient to present a faded receipt that cannot be read. All businesses therefore have three options to ensure the "fadable" dockets remain readable:
- All till receipts and dockets can be photocopied and the physical copies filed, or
- All till receipts can be scanned and filed electronically, or
- You can use a scanning and record keeping service.
Options one and two will take your time to record and file and so are suitable for those businesses that do not have a lot of these types of transactions. Depending on the nature of your business needs the third option can cost as little as $20 a month and be as simple as popping your dockets into a prepaid envelope and posting it away.
We think spending $20 a month to reduce your audit risk, obtain a permanent back up of your records, and achieve a compliant solution is a good investment.
To find out more about these options or to arrange a FREE NO OBLIGATION
chat about your requirements please ring our office on 07 5439 1600
or click the button below to make an appointment:
CLICK HERE For the GST Guide for Small Business from the ATO