The GST Calculation Worksheet

The GST Calculation Worksheet is part of the suite of reports in Xero that make up the Business Activity Statement (BAS) and you can use it to see the transaction and GST totals calculated for the BAS Return. The worksheet shows a breakdown of GST amounts taken from all the transactions entered into Xero for the BAS period being reported on, and carries the relevant totals through to your BAS. You can also use the GST Audit Report for the period to see every transaction that occurred and was used in the calculation of totals on the Worksheet (including those that did not incur GST) based on the accounting method you're using (Accruals or Cash as specified in your Activity Statement Settings).

GST Calculation Worksheet

General information about what is displayed for the GST Calculation Worksheet

The GST Calculation Worksheet only shows alongside some of the Activity Statements in Xero, depending on the GST calculation option you've chosen in Activity Settings (Monthly or Quarterly (Option 1)) - these and other settings also determine whether a BAS or IAS (Instalment Activity Statement) is presented for the current tax period.

The GST Calculation Worksheet is run alongside your Business Activity Statement (BAS) - you cannot run it directly from Report Centre. Your user role will determine whether you view Activity Statements and therefore the GST Calculation Worksheet, and if so, whether you can save and publish it or just view it. If you have the Adviser user role you can also access the Activity Statement from the Adviser menu.
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The BAS, GST Calculation Worksheet and GST Audit Report are all linked for the period of the BAS you're completing - once you're done lodging your Activity Statement you can 'publish' the BAS in Xero which will save all three reports together in Xero (on the Published tab in Report Centre) for your records and start up the appropriate new Activity Statement for the next period.

Note: Xero uses only one GST account and the GST portion of all transactions you enter into Xero will go into this account to be used to create the BAS. If you add additional GST accounts to your Chart of Accounts any GST amounts assigned to them will not be included on the BAS or GST Audit report. You can also read an overview of how GST is treated in Xero in The accounting behind Xero.

If your organisation is not registered for GST, none of the GST-related reports will display in Report Centre.

Where does Xero get GST figures from?

Xero uses only one GST account. The GST portion of all transactions you enter into Xero will go into this account to be used in the calculations for populating the BAS Return. The GST component of any transaction (or line item within a transaction) in Xero is determined by the 'Tax Rate' chosen when entering the transaction (that is, GST on Income, GST on Expenses).

How Xero determines the GST portion of a transaction is described below.

Custom tax rates

Xero provides a number of default tax rates but if these aren't right for your business you can create your own tax rates that can be of different tax types in order to determine where on the BAS Return they are reported. Tax amounts charged at these rates will also go through the GST 820 account. If you add additional accounts to be GST accounts to your Chart of Accounts any GST amounts assigned to them will not be included in the GST Return.

The ATO GST Calculation Worksheet method treats GST as 1/11th or 10%. If you are using Custom Tax rates you should check that the GST in the Activity Statement matches the GST Audit report. You may need to manually complete the Activity Statement if they are different.

Cash Basis

The cash basis BAS only includes transactions that are cash payments on the date they were ‘paid’ in Xero, where that date falls in the period you are completing the Return for.  ‘Payment’ transactions means any Spend Money, Receive Money or payments made or received for invoices, bills, credit notes and expense claims that have a GST component.

Accruals Basis

The accruals basis BAS includes all cash and invoice or bill transactions on the date they were made or invoiced, where that date falls in the period you are completing the Return for.  This means Spend Money and Receive Money transactions on the date they occurred, or invoices, bills or credit notes on the date they were raised, or expense claims on the date specified as the reporting date (regardless of whether they have been paid) that have a GST component.

Tax treatment and tax rate

On a transaction you can choose whether the overall transaction has GST, how it is to be calculated and the tax rate to be applied to each line item.

Items that have a tax rate

Tax Options

Items that have no tax rate

No Tax

Refer also to:

What can you see and do with the GST Calculation Worksheet?

Report settings

Xero will automatically display a GST Calculation Worksheet with a BAS run on a Monthly or Quarterly (Option 1) GST Calculation basis (as specified in your Activity Statement Settings).

The BAS is run using the GST Accounting Method and frequency (GST Calculation) you've specified in your Activity Statement Settings and the worksheet will be run automatically to accompany this for the period specified on the BAS. If you want to view the worksheet for a different period you'll need to change the dates on the BAS (although be aware that your settings may determine that an Instalment Activity Statement (IAS) and not a BAS be displayed for a particular date range).

Fields

GST boxes & totals

If you change the figures in editable boxes the current suite of reports making up the BAS will be saved automatically on the Reports Draft tab.

GST Calculation Worksheet totals

The figures shown on the worksheet come from transactions in the period across each different Tax Rate used, in order to determine the reportable amounts for sales, purchases and GST that need to be carried through to the BAS Return. Each total can be tracked back to the full list of transactions for the period displayed on the GST Audit Report, broken down by Tax Rate.

Transactions shown broken down by tax rate.

  • Sales totals and GST amounts charged come from income/revenue transactions using the following Tax Rates, and those totals required for the BAS Return are automatically carried through to the Return:
    • G1 - 'GST on Income', 'GST Free Exports', 'GST Free Income', 'Input Taxed' and your own rates with the tax type 'Sales', 'GST Free Sales', or 'Exempt Income' when used with sales accounts.
    • G2 - 'GST Free Exports'
    • G3 - 'GST Free Income' or your own rates with the tax type 'GST Free Sales'
    • G4 - 'Input Taxed' and your own tax rates with the 'Exempt Income' tax type when used with sales accounts.

Sales

  • Purchases totals and GST amounts paid are derived from purchase/expense transactions using the following Tax Rates, and those totals required for the BAS Return are automatically carried through to the Return:
    • G10 - 'GST on Capital', 'GST Free Capital' and the gross amount calculated from transactions that used the 'GST on Capital Imports' tax rate.
    • G11 - 'GST on Expenses', 'GST Free Expense', 'Input Taxed'. The gross amount calculated from transactions that used the 'GST on Imports' tax rate. Your own tax rates with the tax type 'Purchases', 'GST Free Expense' or 'Exempt Income' when used with expense accounts. Transactions with 'No GST' applied to purchases.
    • G13 - 'Input Taxed' and your own rates with the 'Exempt Income' tax type when used with expense accounts.
    • G14 - 'GST Free Expense', 'GST Free Capital' and your own rates with tax type 'GST Free Expense'. Transactions with 'No GST' applied to purchases.
  • Note re GST on Capital Imports and GST on Imports: The BAS Calculation Worksheet handles the use of GST on Capital Imports and GST on Imports in a specific way, which is different to how it handles other tax codes. In G10 (for GST on Capital Imports) and G11 (for GST on Imports), Xero takes the GST recorded on the transaction, removes the cents and multiplies it by 11. For all other tax codes, Xero removes the cents from the Tax Inclusive value recorded on the transaction and divides it by 11 to calculate the GST.
  • Transactions are not included in GST calculations and are not reported if they use the following tax rates (make sure you only use these tax rates for things you are sure should not go on the BAS Return - if you're not sure, please ask your accountant or bookkeeper):
    • Overall tax treatment 'No Tax' and/or tax rate 'BAS Excluded' (often used on purchase transactions for wage payments or superannuation payments as appropriate to your business).
    • 'No GST' tax rates when applied to non-expense type transactions.
    • 'GST Exempt' tax rates when applied to transactions.

Purchases

  • Where editable fields are displayed on the GST Calculation Worksheet for adjustments or estimates, anything entered will automatically be counted in the total GST payment or refund shown on the BAS.

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Export options

Publish

If you are viewing an Activity Statement that has been saved or published by someone with the Adviser user role, you may see summary information or additional notes on the report. Depending on the status of the report and your role you will be able to export, archive, save or edit it.
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Business Activity Statement (BAS) and GST Audit Report

Other tabs

BAS

  • Select the GST Audit Report tab to see all the transactions that make up the totals on the GST Calculation Worksheet.

View audit rep

Exporting and printing the BAS

Provided your user role allows, you can export the BAS to Excel, PDF or Google Docs formats. You can also print directly from your browser.

Help on exporting and printing reports

Publish

Save the suite of reports that make up the current Activity Statement (that is, BAS, Audit Report and GST Calculation Worksheet if present) in Xero in your list of published reports in order to keep a record of your GST for the period. Once published, you cannot edit the report, but you can run it again by choosing the dates of this period.

Published reports

Publishing also triggers Xero to update the default Activity Statement to the appropriate Activity Statement for the next period so that you don't have to remember where you're up to or what the dates of the next period are. The next Activity Statement may be a BAS or an IAS depending on the frequency you have chosen for these reports in your Activity Statement Settings.

If you are still working on the Activity Statement or have sent it to your accountant or bookkeeper to review, it will appear in your list of draft reports. If an Activity Statement exists in draft, this will always be displayed by default - you'll need to publish or delete it from the Draft tab before Xero will display the default report for the current period (which might be an unedited version of the report currently saved, or one for a later period if the draft report is from a previous period). Your user role will determine whether you can delete a draft report.
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