Your NFP (not for profit) organisation may have had contracts cancelled or had to cancel sales or refund purchases due to the impact of COVID-19. As a result you may have to adjust GST.
Common examples of when to adjust GST include:
- a change in the price of a taxable sale
- a taxable sale is cancelled
If you adjust GST:
- it must have been reported in a previous activity statement, there’s no need to report an adjustment if the event occurs in your current reporting period
- check paid invoices to see if you paid GST, how much and when.
Make your adjustment:
- for the amount paid in each previously lodged activity statement – if you’re accounting for GST on a cash basis
- in the activity statement period you become aware of the adjustment – if you’re accounting for GST on an accruals basis.
Source: ATO