GST in Hubdoc is managed through Tax Rates. The Tax Rates available to use in a Hubdoc Organisation have the same denomination as the Tax Rates set up in Xero.

Hubdoc has four types of Tax Rates:

• Not Reportable GST (BAS Excluded) > when using this Tax Rate in a transaction the GST is not calculated and the transaction will not be included in the Xero Activity Statement Report;
• GST Free > when using GST Free Tax Rates in transactions the GST is not calculated. However, as GST Free transactions must be reported in the BAS, these transactions will be included in the Xero Activity Statement Report;
• GST > when using GST Tax Rates in transactions, Hubdoc will calculate 10% GST. GST transactions will then be included in the Xero Activity Statement report;
• GST on Imports > this Tax Rate is used exclusively to track GST purchase transactions from Custom Duty when goods are imported from overseas. More information on how to use this Tax Rate type is available on our GST on Imports User Guide.

GST Calculated by Tax Rates

When GST is 10% of a purchase transaction, it should always be calculated using Tax Rates. GST should never be manually calculated and posted directly to the GST Account.

Transactions that include both Goods or Services inclusive and exempt of GST

Occasionally, the calculated GST in some Tax Invoices may seem to be less than 10%. Australian GST is always calculated as 10% of the applicable goods or services sold or purchased. When the GST is less than 10% of the total value of the invoice, it simply means this transaction includes some goods or services that attract GST and others that are exempt. In this case, the Invoice amount must be broken down into multiple lines and the Tax Rate assigned to each line modified accordingly. Hubdoc makes this process really simply by automatically calculating the GST applicable and GST exempt portion of the purchase. 

Example 1 - Supermarket Receipts

Supermarket receipts may include the purchase of both Unprocessed Food Items, which are GST Free in Australia, and processed food or other items which attract GST (i.e. cleaning products). Therefore, when making a purchase of Staff Amenities, the receipt should be reviewed before processing it as a Spend Money transaction in Hubdoc. If the receipt includes both GST applicable and GST Exempt items, the GST portion of the receipt must be split from the GST free portion of the transaction.

An example of a Supermarket receipt for Amenities

1. Upload the Receipt to Hubdoc
2. Select the Edit Document bar
   
   è  The Hubdoc Edit Document screen
   
   
   
   
3. Select/Enter the following details:
   • Document Type > Select: Receipt
   • Supplier > Select: Supermarkets
   • Date > Type the receipt date
   • Due Date > Type the receipt date
   • Total Amount > Type the total amount of the receipt
   • Tax Rate > Select: Extracted Amount
   • Tax Amount > type the total GST from the receipt
   • Taxable Portion > Select: GST on Expenses
   • Untaxed Portion > Select: GST Free Expenses
   • Account > Select: Staff Amenities
4. Click on [Generate Line Items]
   
   è  Hubdoc calculates the GST and GST Free portion of the transaction and split it into separate lines
   
   
   
   
5. Click on [Save & Close]
6. Publish the transaction to Xero

Example 2: Purchase of Insurance

Most Insurances include Stamp Duty charges which are GST Exempt (Non-reportable). Therefore, Stamp Duty should be separated from other Insurance charges which are applicable to GST (Premium, ESL, Broker Fees etc).

Example of an Insurance Invoice

1. Upload the Tax Invoice to Hubdoc
2. Select the Edit Document bar
   
   è  The Hubdoc Edit Document screen
   
   
   
   
3. Select/Enter the following details:
   • Document Type > Select: Tax Invoice
   • Supplier > Select/Create the Insurance Company contact
   • Date > Type the Invoice date
   • Due Date > Type the Invoice due date
   • Total Amount > Type the total amount of the Tax Invoice
   • Tax Rate > Select: Extracted Amount
   • Tax Amount > type the total GST from the Insurance Tax Invoice
   • Taxable Portion > Select: GST on Expenses
   • Untaxed Portion > Select: BAS Excluded
   • Account > Select: Insurance Expenses
4. Click on [Generate Line Items]
   
   è  Hubdoc calculates the GST and GST Exempt portion of the transaction and split it into separate lines
   
   
   
   
5. Click on [Save & Close]
6. Publish the transaction to Xero

Training Video - Publishing Complex Transactions from Hubdoc to Xero