When a transaction is locked into a GST return, any corrections affecting the GST amount should be handled as a late GST claim. This adjustment will appear in the next available GST return, specifically in Box 9 or Box 13 of the NZ GST-IRD form. This approach ensures changes to GST are recorded in the correct section of the return and remain easily identifiable. We recommend consulting your accountant before submitting a late GST claim.
Please note:
- For New Zealand businesses, the late GST claim process applies.
- For Australian businesses, you will need to create a GST reversal instead. To learn more about making GST adjustments in Australia, click here.
Scenario: You claimed GST on the repair of an oven in your worker's dwelling and this transaction has been locked into a GST return that was submitted to the IRD. The transaction date was 20 July 2024. This should have been GST-exempt as GST should not be claimed on expenses or income relating to farm dwellings.
Go to Reports > GST return.
Find the finalised GST return containing the transaction for the oven repair.
Click on the report to open it.
Navigate to the Coded lines section within the report.
Locate the specific transaction you're looking for in that section.
Click on the view (eye) icon.
This will take you to the associated invoice or transaction.
Click on the +Edit token.
Navigate to the three vertical lines on the coded line that you want to correct and click here.
Select Late GST claim.
A modal will appear. Select the correct GST type for the coded line to complete the modal. In this scenario it is Exempt. Then select Create.
The GST type will be corrected.
shows the change of GST type, in this instance it has changed from Business to Exempt
the orange token alerts you that a Late claim has been applied. It also allows you to undo the Late claim, if required, and the original invoice or transaction reverts back to its prior state.
13. Click the orange token, to be taken to the associated journal entry.
Late claim referenced in the header.
shows the code is the same.
shows the GST type reflecting the changes made.
shows which line is the revised and corrected coding line. The top line is always how you originally coded the line.
the total amount of the journal entry will always be zero.
gives you the ability to view the original transaction. If the GST has not been finalised you will also get the ability to undo the changes.
14. Go back to Reports > GST Return.
15. Click into the next available GST return and scroll to the bottom.
16. Click into Late claims tab and view your late claim.
17. When reviewing your GST report, you’ll see an adjustment in Box 9. This adjustment reflects an underpayment of GST caused by incorrectly claiming an exempt expense as a business expense.
18. Select the drilling button to view the details of the adjustment.
19. Late claims are visible in the Completed page in both the Coded lines and transactions pages.
Further Information
You can make a correction to any GST claim and the changes will flow to the next available GST return.
You get the option to undo until you file the GST return with the IRD. It is then unavailable. If you select undo, the original invoice or transaction reverts back to its prior state.
Once a late claim has been created, the original record is locked and you cannot change the code unless you select undo.
The late claim will be visible in the Accountants Annual Report.
Making changes to Zero-related GST claims is not available as generally they are large claims. Please consult your accountant for individualised advice.
With a partially paid invoice, you can select which coded line you need to edit.
If a partially paid invoice has a late claim journal, GST is automatically corrected for future payments.