GST is a broad-based consumption tax applied to most goods and services. Businesses collect GST on sales and claim credits for GST paid on purchases, remitting the net amount to the tax authority.
The Goods and Services Tax is a value-added tax used in Australia (10%), New Zealand (15%), Singapore (9%), India (5-28% multi-rate), Canada (5% federal plus provincial) and many other countries. As a GST-registered business, you charge GST on your taxable sales (output tax) and claim credits for GST paid on business purchases (input tax). Each reporting period, you calculate the difference: if you collected more GST than you paid, you remit the difference to the tax authority. If you paid more than you collected, you receive a refund. GST compliance requires correct categorisation of every transaction - standard rated, zero-rated, exempt or input-taxed - and proper record keeping including valid tax invoices. Errors in GST reporting can result in penalties, interest and audits. SortBooks helps with GST by suggesting the right GST code along with the account for miscoded transactions and, on Growth and above, giving you a quarterly GST estimate to check before you lodge.
SortBooks helps with the bookkeeping behind gst (goods and services tax) by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing gst (goods and services tax) by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
The BAS is an Australian tax form used to report GST, PAYG withholding, PAYG instalments and other tax obligations to the ATO, typically lodged quarterly.
VAT is a consumption tax charged on goods and services at each stage of production and distribution. Businesses collect VAT on sales and reclaim VAT on purchases, remitting the net amount.
Tax compliance means meeting all your obligations to file tax returns, make payments and maintain records as required by your country's tax laws and tax authority.
An input tax credit is the GST/VAT you paid on business purchases that you can claim back from the tax authority. It offsets the GST/VAT you collected on sales.
A tax invoice is a document that includes GST/VAT information and your registration number. It is required for customers to claim input tax credits on their purchases from you.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.