Notional input credits – Get it wrong and you risk prosecution.
We recently started an informal survey of car dealers, but stopped the survey after calling only forty dealers. A disturbing situation regarding notional input credits had quickly become evident and the survey was going to serve no further purpose. Not one of the dealers we spoke to could correctly answer all of our five questions about notional input credits. It seems clear that the potential for intervention by the Australian Tax Office is dangerously high.
We have also observed an increase in the number of accountants who are having difficulties understanding the tax laws. Remember, the tax laws, as they relate to GST in the used motor industry, have been defined for some time now. It seems clear that the used motor trade is too complex for the GST laws to be applied manually or with generic accounting packages such as MYOB, Quick Books, Quicken etc etc.
So, how on Earth can you, or even your accountant, be expected to keep accurate records when there are a myriad of variations that can affect the amount of notional input credits that you are entitled to? How can your accountant gather the numerous details, for each and every purchase/sale, without charging you a lot more? The chances are that a lot of guessing is already being done and that you are risking prosecution by claiming too much, or else you are not getting your rightful credits. Either way, it could amount to lots of money down the drain.
Fortunately for EasyCars 2000 users there is a simple solution to this complex issue…. a fully integrated accounting package called EasyCash Professional.
EasyCars / EasyCash Pro not only calculates and records GST liability and input credits in relation to vehicle sales and expenses; it correctly records the special or notional input credits, which apply to second-hand goods purchased from an unregistered person.
Don’t risk loosing your money or worse still, prosecution simply because your accountant is unaware of all of the tax implications involved in our industry. Integrate EasyCars and EasyCash Professional today and save time and money tomorrow.
You will be able to print the BAS report for either Accruals basis reporting or Cash basis reporting – EasyCars / EasyCash Pro takes so much into account in relation to the GST and the BAS reports.
If you are having trouble with complicated and general accounting programs or still doing all your accounts by hand, call our office with any questions about EasyCash Professional. It is a “simple to use” but amazingly effective program.
Thank you and sell lots of cars.
Phone: (02) 9623 6403 Fax: (02) 9673 4063
Email: firstname.lastname@example.org Web: www.jeal.com.au