Cash (payments) reporting Using the method described above, a bad debt won't affect the GST where the GST is reported on a cash basis. This is because GST collected is only reported once the payment has been received from the customer. Since the customer never paid the invoice, no GST would have been reported. Accrual (invoice) reporting Australia: Using the method described above, the Adjustment Note will be included in at G1 on your BAS for this period at G1. New Zealand: This transaction will only affect GST if you report GST on a non-cash (Accrual) basis and the GST collected on the sale has already been reported and paid to the IRD before the bad debt is realised. |