Customers who purchase both taxable and non taxable items?

  • 1
  • Question
  • Updated 2 months ago
Hi... we are starting to sell products that are subject to GST (our existing products are GST free).    How do we invoice a customer that purchases both GST and Non-GST products?   Does the customer tax code always override the individual item tax code?   Any advice appreciated!
Photo of Penny Pope

Penny Pope

  • 162 Points 100 badge 2x thumb

Posted 2 months ago

  • 1
Photo of Bruce

Bruce

  • 3,186 Points 3k badge 2x thumb
I have never used the customer tax code.  The reason for this is that it is the supplier of goods and services who determines whether a supply is taxable not the recipient and this decision must be made on a sale by sale basis.  Having said this the tax codes used on the invoice override the "customer tax code".

When invoicing I use multiple lines for various items and make a GST/FRE/EXP etc determination for each line.   My experience, using the approach, is that the BAS related reports produce accurate results. 
Photo of Penny Pope

Penny Pope

  • 162 Points 100 badge 2x thumb
Many thanks for your advice Bruce, greatly appreciated!  I can see that all of our customers have been set up with a tax code so I will try and remove it and try again... :-)