How to set up tax-free import creditors for Australian GST in Microsoft Dynamics GP

This article describes how to set up tax-free import creditors for Australian Goods and Services Tax (GST) in Microsoft Dynamics GP and in Microsoft Business Solutions - Great Plains.

Applies to:   Microsoft Dynamics GP
Original KB number:   944226

Introduction

You can use the Australian Taxation Information Setup Wizard that is installed as a part of the Business Activity Statement (BAS) to create all the tax schedules and all the tax details that are needed for Australian GST. The Australian Taxation Information Setup Wizard is enabled when you select the Enable GST for Australia check box in the Company Setup Options window.

More information

To open the Company Setup Options window in Microsoft Dynamics GP 10.0, follow these steps:

1. On the Microsoft Dynamics GP menu, point to Tools, point to Setup, point to Company, and then select Company.
2. In the Company Setup window, select Options.

To open the Company Setup Options window in Microsoft Dynamics GP 9.0 or in Microsoft Business Solutions - Great Plains 8.0, follow these steps:

1. On the Tools menu, point to Setup, point to Company, and then select Company.
2. In the Company Setup window, select Options.

The Australian Taxation Information Setup Wizard creates the tax schedules and the tax details for most of the situations that Australian companies need. It includes a setup for export debtors. One situation that is currently not supported is when Australian companies purchase a good that doesn't enter Australia or a service that doesn't occur in Australia. In this situation, no GST is charged, and this transaction is classified as GST free.

To set up tax-free import creditors for Australian GST, follow these steps:

1. Open the Tax Detail Maintenance window. To do it in Microsoft Dynamics GP 10.0, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then select Tax Details.

   To do it in Microsoft Dynamics GP 9.0 or in Microsoft Business Solutions - Great Plains 8.0, point to Setup on the Tools menu, point to Company, and then select Tax Details.

2. Create a new tax detail. To do it, specify the following settings:

   • Tax Detail ID: AUSGST+IMP

   • Description: GST Tax Free Import Supply

   • Type: Purchases

   • Account: Account number for the GST paid

   • Based On: Percent of Sale/Purchase

   • Percentage: 0.00000%

   • Round: To the Nearest Currency Decimal Digit

   • Print on Documents: Select this check box

   • BAS Assignments: G14

     Note

     When you select G14, G11 is automatically selected.

   • The box next to the Print on Documents check box: G

3. Select Save.

4. Create another new tax detail. To do it, specify the following settings:

   • Tax Detail ID: AUSGSTI+IMP

   • Description: GST Inc Tax Free Import Supply

   • Type: Purchases

   • Account: Account number for the GST paid

   • Based On: Tax Included with Item Price

   • Percentage: 0.00000%

   • Round: To the Nearest Currency Decimal Digit

   • Print on Documents: Select this check box

   • BAS Assignments: G14

     Note

     When you select G14, G11 is automatically selected.

   • The box next to the Print on Documents check box: G

5. Select Save.

6. Close the Tax Detail Maintenance window.

7. Open the Tax Schedule Maintenance window. To do it in Microsoft Dynamics GP 10.0, point to Tools on the Microsoft Dynamics GP menu, point to Setup, point to Company, and then select Tax Schedules.

   To do it in Microsoft Dynamics GP 9.0 or in Microsoft Business Solutions - Great Plains 8.0, point to Setup on the Tools menu, point to Company, and then select Tax Schedules.

8. Create a new tax schedule. To do it, specify the following settings:

   • Tax Schedule ID: AUSGST-IMP
   • Description: GST Import Creditor
   • Selected Tax Details: AUSGST+IMP and AUSGSTI+IMP

9. Select the lookup button next to the Tax Schedule ID field, select AUSGST-FRE, insert the AUSGST+IMP tax detail ID, and then select Save.

10. Select the lookup button next to the Tax Schedule ID field, select AUSGST-GST, insert the AUSGST+IMP tax detail ID, and then select Save.

11. Select the lookup button next to the Tax Schedule ID field, select AUSGST-INP, insert the AUSGST+IMP tax detail ID, and then select Save.

12. Select the lookup button next to the Tax Schedule ID field, select AUSGSTI-FRE, insert the AUSGSTI+IMP tax detail ID, and then select Save.

13. Select the lookup button next to the Tax Schedule ID field, select AUSGSTI-GST, insert the AUSGSTI+IMP tax detail ID, and then select Save.

14. Select the lookup button next to the Tax Schedule ID field, select AUSGSTI-INP, insert the AUSGSTI+IMP tax detail ID, and then select Save.

15. Close the Tax Schedule Maintenance window.

    Note

    You can add the appropriate AUSGST+IMP tax detail ID or the appropriate AUSGSTI+IMP tax detail ID to the other tax schedules for purchases. This includes any of the following domestic tax schedules:

    • Private use
    • Reduced input tax credits
    • Capital acquisitions
    • Input taxed
    • Luxury car tax
    • Wine equalization tax

    However, it's unlikely that you'll use an international creditor together with these domestic tax schedules.

16. In the Creditor Maintenance window or in the Creditor Address Maintenance window, assign the AUSGST-IMP tax schedule ID to the appropriate creditor IDs.

    To open the Creditor Maintenance window, point to Purchasing on the Cards menu, and then select Creditors.

    To open the Creditor Address Maintenance window, point to Purchasing on the Cards menu, and then select Addresses.