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NFP (not-for-profit): Adjusting GST due to COVID-19

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

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