GST classification errors can lead to significant under-reporting of GST for some taxpayers.

The ATO recently issued guidance for small to medium businesses on self-reviewing GST

classification of food and health products.

The use of this guide is not mandatory, although the ATO encourages small to medium businesses

to regularly self-review the GST classification of supplies, and adopt better practice processes and

controls as listed in the accompanying checklist.

The checklist provides practical, step-by-step guidance for entities to:

• self-review the GST classification of their supplies (products they import, purchase as stock or produce for sale); and

• assess the robustness of their business systems, processes and controls that directly impact their GST classification systems.

Small business food retailers with turnover of $2 million or less may use one of the ‘GST simplified accounting methods’ to account for GST instead.

If you have any questions or would like to speak to one of our professional business and tax advisors, please contact our office on (08) 9392 7600 to make a booking or click here.

With three offices across Western Australia and over 20 years of experience, Acclaim Accounting is a dynamic team of highly trained and skilled individuals committed to providing innovative and effective advice, excellent service and maintaining only the highest standards in ethical professional practice