This article explains how GST works in Zoho Books, from setting up the tax and invoicing customers to lodging your BAS with the ATO.

Applies to: Zoho Books – All clients

1. Set up GST

1. Open Settings (the gear icon at the top right).

   

2. Create a new tax, name it GST and enter the rate.
3. In the tax settings, enter your GST number and choose the GST method: cash or accrual. Most small businesses use the cash basis. If you're not sure, check with the ATO or your accountant.

2. Set the default tax on customers

Most Australian customers need to be charged GST. When you set up a customer record, choose the default tax rate to charge them.

3. Set the tax on items

Some goods and services are tax exempt. Set whether GST applies on each item (good or service) under Items.

4. Invoice and receive payment

When the customer and item are set up correctly, GST is added to the invoice automatically.

When the payment arrives, match it to the full invoice amount. You don't need to match the GST separately; Zoho Books handles it based on your settings. To see the invoice's journal, open the invoice in Sales, click More and select View journal.

Receiving the payment posts a debit to the bank account and a credit to Accounts Receivable. Both amounts include GST, so you don't need to separate the tax. The GST payable is held in a separate ledger account, which is cleared when you lodge your BAS.

5. Lodge your BAS

1. Go to Reports, and under Taxes select BAS. You can choose a detailed or a simpler view. For most small businesses, the simpler view is enough to lodge the BAS.

   

2. Enter the amounts in the boxes on the ATO BAS lodgement form.
3. Record the BAS as lodged in Zoho Books.