Tax Code
Should I still use "cap" as tax code if purchasing a furniture if it's eligle for Instant Asset Write off because it's below 1,000 or shall I use "gst"? Thank you.
"Using the "GST" tax code implies that Goods and Services Tax is applicable to the purchase. However, when an asset is eligible for the Instant Asset Write-Off, it's typically excluded from GST calculations."
Earl, your response is quite misleading, it implies there is no GST to claim ('Typically Excluded') on assets elligible for instant asset write offs. If you meant that the initial purchase is not excluded (ie you do claim the GST) and the subsiquent write off claim is then excluded, then you should have stated this.
Since the ATO simplified the BASs GST section to require just G1, 1A & 1B (ie we are not reporting any info about purchases at all other than the GST paid). There is now no need to use the old 'CAP' tax codes, you can use 'GST' tax code instead. You can continue to use CAP of course & its only real benefit is for you own internal reporting.
Myself being old school and having been using & supporting MYOB since 1990/1991 I still use CAP tax codes to this day but its nothing more than a habit, its usefulness is next to nothing these days. (I'll break this habit one day I keep promising myself LOL)
