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Free Accounting Software Forum - Tax exempt for certain customers

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Hi Glen,

I want to setup a new customer and generally want to exempt this customer for tax. The customer is in NZ. I go there and work there for a couple of weeks. As the nature of the business is in NZ I do not have to charge him GST.

Your help is much appreciated.

When you put through the sales you need to select the "Export sales" tax code. This is not linked to the customer in any way it's just on a sale by sale basis.

Whilst I can understand that the customer may only ever be sold GST free exports, I don't think it is technically correct to set up a customer as GST free exports. To be technically correct you need to select it on each sale. The ATO ruling GSTR 2000/31 discusses "supplies connected with Australia".

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