From 1 July 2012 businesses in the building and construction industry are required to report the total payments they make to each contractor for building and construction services each year. You must provide this information to the ATO via the Taxable payments annual report.
In our 2011/12 end-of-year information we advised that we will make a new report available in Attaché Accounts in 2013 to facilitate this reporting via SBR or Bulk Data Exchange. This will be achieved by modifying existing BAS reporting.
Recently we have received a number of queries from Attaché users asking how they can distinguish invoices which are for services from those which are for materials. We have sought guidance from the ATO and have been advised that this is not required:
“Under the new taxable payments reporting system, a payer is not required to report on payments made for materials only. However, if there is a significant administrative effort involved in extracting payments for materials only, it is acceptable for a business to include these payments in its report”.
To ensure you are recording the correct information, you should make sure that BAS options are correctly configured in your software and that you perform regular (monthly or quarterly) BAS updates. For further information, refer to the Attaché Accounts GST Handbook (PDF) available from the Attaché Members website.
Should you still have concerns with this or any other issues relating to your reporting obligations, please visit the ATO website at www.ato.gov.au/taxablepaymentsreporting or contact the ATO.