Key points


• There is often a crossover between personal and business use of goods and services. You need to adjust your GST return to reflect this.

In some instances, you may need to calculate a GST adjustment to either pay GST, eg, for a business asset used privately, or claim back GST that's already been paid, eg, for a private asset used for business. You may also need to make adjustments for certain late claims and credit or debit notes that include GST at the old rate of 12.5%. For other adjustments, you'll need to work out the private or exempt portion of various income and expenses.

Many small businesses get help from their accountant/tax agent for adjustments.

Credit and debit notes You may have to include credit and debit notes in your calculations when you're making an adjustment.

• Credit notes are issued when the price of a supply has reduced after a tax invoice was issued, eg, the return of faulty goods.

• Debit notes are issued when the price increases after a tax invoice has been issued.

GST adjustments calculation sheet (IR372) The IR372 helps you calculate your GST adjustments. It lists the items which you need to make an adjustment for. Use the sheet to record the adjustments you need to make, then:

• transfer the figures to your GST return

• attach the sheet to your copy of the GST return

• keep full details on how you calculated the items.

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