How does the reverse charge mechanism in the BAS report work?

 Author: JayATO(Community Support)Community Support

14 Apr 2026

Hi @Zareen,

Reverse charge only applies in specific circumstances where GST would otherwise not be paid and a full GST credit wouldn’t be available.

You only need to account for GST under the reverse charge if all of the following apply:

• you’re registered, or required to be registered, for GST
• the supply is an imported service, digital product or low‑value imported goods
• the supply isn’t GST‑free, and
• you wouldn’t have been entitled to a full GST credit if GST had been charged (for example, because the purchase is partly private or relates to making input‑taxed supplies).

If the reverse charge does apply, the GST payable is 10% of the amount paid. You then claim a GST credit for the amount you’re entitled to on the same BAS. Where you’re entitled to a full GST credit, the reverse charge results in no net GST payable.

If you’re using Meta’s services wholly for your taxable business and would be entitled to a full GST credit, the reverse charge doesn’t apply, and you:

• report the purchase amount at G10 or G11, and
• don’t report anything at 1A or 1B for those invoices.