On 1st January 2023 there is both a GST rate increase to 8%, and new reporting requirements for GST. A further rate increase to 9% is set for 1st January 2024.
The new reporting requirements, which incorporate a reverse charge tax, are available in MoneyWorks 9.1.1. The F5 form and IRAS Connect require the use of the following tax codes to fill the designated boxes.
|Box 14: Did you import services subject to GST under Reverse Charge?|
|LVRC||A Reverse Tax which applies the claimable amount of the service only, and should only be used on purchase transactions.|
|LVRC-||This applies to the non-claimable amount of the service, and should be set up as a normal GST tax at 0%.|
|Thus a purchase of a $200 service under reverse charge where 90% is claimable would be entered as:
|Box 15: Did you operate an electronic marketplace to supply remote services subject to GST on behalf of third-party suppliers?|
|EMREM||This is a normal GST code set up for 8% GST on or after 1st January 2023. It should only be used on sales transaction.|
|Box 16: Are you a redeliverer or electronic marketplace operator supplying imported low-value goods that is subject to GST?|
|LVRED||This is a normal GST code set up for 8% GST on or after 1st January 2023. It should only be used on sales transaction.|
|Box 17: Did you supply imported low-value goods that is subject to GST?|
|LVOWN||This is a normal GST code set up for 8% GST on or after 1st January 2023. It should only be used on sales transaction.|
|The net of transaction lines that use any of the above codes is also included in Box 1|
You will need to set up these codes (under Show>Tax Rates) manually if you are affected by these new reporting requirements and your file was created in a version of MoneyWorks earlier than 9.1.1. Be sure to set LVRC as a Reversed Tax, and not to GST or VAT.