Correcting a mistake made on an earlier BAS is different to making an adjustment.
- An error or mistake relates to an amount that was incorrect at the time of lodgment.
- An adjustment relates to a reported sale or purchase that was correct at the time of lodgment, but something occurred later that changed the amount of reported GST.
When to fix a mistake
Examples of mistakes include:
- Clerical or transposition errors
- Classifying a GST-free sale or purchase as taxable
- Classifying a taxable sale or purchase as GST-free
- Double counting some of your purchases.
How to fix a mistake
You can fix a mistake on your next BAS or revise the original BAS. Conditions apply depending on if it’s a credit or debit error.
Many mistakes relating to GST and fuel tax credit can be corrected in your next BAS. If you can’t correct your mistake in your next BAS, you need to lodge a revision.
See also:
When to make an adjustment
When you become aware of the need for an adjustment, you generally report it in the activity statement for your current reporting period.
Examples of when to make an adjustment:
- If the price of a sale or purchase changes
- If goods are returned and the sale is cancelled.
See also:
How to lodge your changes
You can do this by:
- Businesses can use
- Online services for business
- Standard Business Reporting (SBR) enabled software
- Sole traders can also use Online services for business, SBR or online services for individuals (you will need a myGov account linked to the ATO)
- phoning the ATO on 13 28 66 to get a revision form.
Feel free to contact us here if you need assistance making any amends to your BAS. Reach out to our team here.
Source: ato.gov.au March 2021
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/Fixing-BAS-mistakes-or-making-adjustments/.
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