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jctrades(Initiate)Initiate
18 Feb 2024

Hi, would like to ask two questions:


If I want to sell like handbags online, for sole trader BAS reporting:


e.g. say sales in a month:


1, if we have

sales of $1100 ($1000 + GST $100),

and refunds to customer $220 ($200 + GST $20),


in G1 (Total sales Inc GST) we record - $1100


in 8A (Total amount you owe the Tax Office):

do we record -- $80 (GST $100 - GST $20) ?


2, continue with the same figure above:


We refund to customer $220 ($200 + GST $20), because they returned their purchase.

If we have to dispose the returned goods (for whatever reason we can't resell),


Since this $220 refund becomes business expenses,

do we record this $220 in G11 (Non-capital purchases)?


thank you,

regards,


952 views
4 replies
952 views
4 replies

Most helpful response

Most helpful reply

TonyATO(Community Support)Community Support
21 Feb 2024

Hello @jctrades


Not quite. You only need to tell us about a customer refund if you reported the handbag as a sale on a prior BAS.


The easiest way to fix this is to revise the BAS that included the sale.


For example:

Let's say you told us about the handbag sale of $220 in your December BAS, you can revise the December and remove the $220. If you haven't lodged December BAS yet, you simply won't include the $220.


The other way you can fix this is by making an adjustment on a later BAS, but a revision is definitely the easier option.

All replies

Most helpful reply

TonyATO(Community Support)Community Support
21 Feb 2024

Hello @jctrades


Not quite. You only need to tell us about a customer refund if you reported the handbag as a sale on a prior BAS.


The easiest way to fix this is to revise the BAS that included the sale.


For example:

Let's say you told us about the handbag sale of $220 in your December BAS, you can revise the December and remove the $220. If you haven't lodged December BAS yet, you simply won't include the $220.


The other way you can fix this is by making an adjustment on a later BAS, but a revision is definitely the easier option.

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How to record refund to customer when file BAS | ATO Community