How does Reckon handle GST on inventory held?

How does Reckon handle GST on inventory held? Is it claimed at payment of goods but while it is still kept in stock or is it claimed at sale of goods held in inventory

Irene Mac

90 Points

Posted 1 year ago

1 year ago

Malcolm McMaster

324 Points

GST is payable when the suppliers invoice is entered or paid depending on Cash accounting or Accrual account for GST.
GST as such has nothing to do with inventory. All inventory valuations will not include any GST.

Comment

1 year ago

Irene Mac

90 Points

Thanks for the information. I am in the process of selling the business and I was confused about how to handle the sale of stock to the new owners. If from what you say I have already claimed the GST at the time of purchase (cost) of the stock items. The new owners will charge GST on the stock items when sold, but from what I understand is they won't be able to claim GST on the purchase because I have already claimed it. How can I then charge the new owners GST again??
Or do I charge GST on stock pay the GST again and then they claim it back???

Comment

1 year ago

Kevin Russell, Accredited Partner

52,814 Points

Irene this is not the place for tax advice. You need to talk to your accountant or tax agent. By law they are the only people who should be advising on tax.