How do I record the payment of gst only on insurance claims?

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Toni_8081860
Toni_8081860 Member Posts: 14 ✭
edited August 2019 in Accounts Hosted

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  • Toni_8081860
    Toni_8081860 Member Posts: 14 ✭
    edited October 2016
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    Hi Kevin

    Thanks for your reply.  The insurance company received a bill for the repairs to the vehicle.  They paid all of the account except the GST portion which they told us they cannot pay and that we had to pay.  How do I process this transaction for the GST?  If it isn't 100% GST, then what is it?

    Thanks
    Toni
  • Toni_8081860
    Toni_8081860 Member Posts: 14 ✭
    edited October 2016
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    Hi Kevin
    I am really confused with this one!
    The total bill was $10,289.08 including GST.
    The insurance company paid $9,354.10 which was the pre GST amount.
    We paid $935.41 which was the total GST payable on the $9,354.10.
    They told us we had to claim the full GST back in our BAS, but I don't know how to do this?
    Would you be so kind as to step it out for me?
    Thanks
  • Toni_8081860
    Toni_8081860 Member Posts: 14 ✭
    edited October 2016
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    Hi Kevin Apparently they are not allowed to. We have to and claim it back on our BAS. It's the only transaction that is holding back me finalising the BAS and it's doing my head in...
  • Adrian_6974554
    Adrian_6974554 Member Posts: 191 ✭✭
    edited August 2019
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    Hello Tony Enter in a bill. First line allocate to motor vehicle expenses with tax code NCG. Then on the next line allocate to Insurance Recoveries, only put the amount that the insurance company paid, no tax code. Enter the amount as a negative. You will then be left with the net amount of GST to pay on the bill. Adrian
  • Adrian_6974554
    Adrian_6974554 Member Posts: 191 ✭✭
    edited August 2016
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    Hello Kevin I would say an expense account, other wise you would have an income account for the insurance recovery and no associated expense. So would be paying more in tax. The vehicle would only be returned to its original state, so should not be an additional to the cost base of the car. Most of the time all you would see it possibly the excess amount paid and nothing else. Adrian
  • Toni_8081860
    Toni_8081860 Member Posts: 14 ✭
    edited October 2016
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    Thank you Adrian & Kevin for your help - greatly appreciated.

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