When operating a small business, we understand mistaken can happen. That’s why we’ve updated our website to explain what to do when you incorrectly charge GST on a sale and include the excess GST in your business activity statement (BAS).
This might happen when you:
- treat something which is not a sale as a taxable sale
- treat a GST-free or input taxed sale as a taxable sale
- report a higher amount of GST on a BAS due to miscalculating your GST liability.
The excess GST is treated as correctly payable on a taxable sale under the law (and we cannot refund it to you) where you have passed on the excess GST to your customer in the price they paid for the sale and you have not reimbursed them.
If you reimburse your customer for the passed on GST, you and your customer may have adjustments to correct the amounts of GST previously reported.
Find out more about incorrectly charged GST.