If your business is in the building and construction industry you are quickly running out of time to get your Taxable payments annual report lodged!
Who do I have to include, and for what?
You need to report the total payments that you make to each contractor that provided you with building and construction services during the year. A contractor can be a sole trader (an individual), company, partnership or trust and the services within scope are broad including drafting, certification, painting, landscaping, construction, project management and surveying.
There are some exceptions, but if invoices you receive include both labour and materials (whether itemised or combined) you typically report the whole amount of the payment. And you don’t have to report payments that are for materials only, or for invoices that you have not paid prior to 30 June each year.
What level of detail is required?
The details that you need to include in the report includes:
- the suppliers ABN
- their name
- their address
- the gross amount you paid for the financial year (including GST)
- the total GST included in the amount you paid
You need to report payments to the ATO on the Taxable payments annual report by 28 August each year, and you can lodge online using the Business, Tax Agent and BAS Agent Portals or Standard Business Reporting (SBR); or by completing the paper form Taxable payments annual report (NAT 74109) and mailing it to the ATO.
What is this information used for?
The information included in your report is used for:
- pre-filling purposes to make it easier for individual contractors to lodge their income tax returns; and
- data-matching to ensure contractors comply with their tax obligations including lodging their tax returns, reporting all their income in lodged tax returns, complying with their GST obligations, and quoting their correct ABN.
What if I don’t have adequate records to complete the Taxable payments annual report?
If you need help completing your Taxable payments annual report, why not reach out to the team here at Business Wise!