GST rates are not one-size-fits-all. Most countries with GST systems have multiple rates or categories that apply to different types of goods and services. Understanding which rate applies to your products and services is essential for correct invoicing, accurate financial reporting and compliance. Applying the wrong rate can result in underpaying (penalties) or overpaying (cash flow loss) your GST obligations.
Identify the standard GST rate in your country
Learn which goods and services qualify for reduced or zero rates
Understand which items are GST-exempt or input-taxed
Set up your accounting software with all applicable GST codes
Apply the correct rate to each product or service you sell
Review your chart of accounts to ensure GST mapping is accurate
Periodically review rate changes and update your systems accordingly
Businesses in Australia operating under the GST + BAS system must meet these compliance requirements set by ATO:
Applying the standard rate to items that should be zero-rated or exempt
Not updating rates when government changes are announced
Confusing zero-rated (can claim input credits) with exempt (cannot claim)
Not separating different rate items on invoices
Applying domestic GST rates to export transactions
Not understanding reverse charge rules for imported services
SortBooks connects to your Xero account and handles GST + BAS compliance automatically. Every transaction is categorised with the correct tax treatment, bank feeds are reconciled in real-time and your ATO-ready reports are always up to date. No more last-minute scrambles or manual data entry.
Every transaction gets the correct GST + BAS code automatically - 97%+ accuracy from day one.
Generate compliant reports for ATO at any time - no reconciliation needed.
Never miss a filing deadline. SortBooks tracks your obligations and reminds you in advance.
Australia: 10% standard, 0% for basic food and exports. New Zealand: 15% standard, 0% for financial services and exports. Singapore: 9% standard, 0% for exports. India: 5%, 12%, 18%, 28% depending on goods/services. Canada: 5% federal GST plus provincial rates.
Zero-rated supplies have a 0% GST rate but you can still claim input tax credits on related purchases. Exempt supplies are not subject to GST and you cannot claim input tax credits on related purchases. This distinction is important for your overall GST position.
SortBooks learns your business patterns and automatically applies the correct GST rate to each transaction type. It handles standard, reduced, zero-rated and exempt supplies - adapting to your specific country and business type.
Join thousands of Australia businesses using AI to handle their bookkeeping and tax compliance.