Consumption taxes like GST and VAT can have a material impact on forecast cashflow, so it’s important to set them up the right way. Castaway includes a range of flexible settings to help you model the calculation and payment of GST/VAT.
Setting up GST/VAT in Castaway involves 3 steps:
- Set the standard rate and calculation method
- Set the lodgement and payment timings
- Set the GST/VAT rate for each element
1. Set the standard rate and calculation method
To access the Taxes setup screen in an existing forecast, go to Setup > Forecast Options > GST/VAT Method.
Set the Standard GST/VAT rate. Note that this rate will be applied to every NEW element by default, and can be adjusted for each individual element separately as well.
Next, set the GST/VAT Calculation Method. Choose between:
- Accruals (default): GST/VAT Liability is recognised based on invoice timing, not payment
- Cash: GST/VAT is accrued based on invoice timing, but GST/VAT Liability is recognised based on payment timing
2. Set the lodgement and payment timings
Open the GST/VAT Payments element located at the balance sheet section of the Castaway Chart of Accounts.
From this screen, you can control settings for:
- How frequently GST/VAT returns are lodged with the relevant revenue authority
- The timing of payments or refunds arising from those returns
GST/VAT Lodgement Method
- Calculate - Castaway will calculate the amount owing or refundable for each GST/VAT return
- Manual Entry - enter the values of each GST/VAT return yourself
GST/VAT Lodgement Schedule
- Set the frequency of GST/VAT returns
- Choose between Monthly, 2 Monthly, 6 Monthly or Annual cycles
Cycle End Month
- Select any month that is the end of a lodgement cycle
- Note this is the month your return cycle ends, which may be different to the month when you actually lodge the return and pay the amount owing or receive the amount refundable
GST/VAT cashflow timing
Use the Days Credit data entry row to specify the payment terms for each return to be lodged.
2 Monthly (odd cycle)
Cycle End Month
March, June, September
January, March, May, July,
Generally 28 days
Generally 28 days,
3. Review the GST/VAT rates for each element
GST/VAT rates apply to 5 types of element in Castaway:
- Fixed Assets (Tangible)
- Fixed Assets (Intangible)
If you identify any elements that need a GST/VAT rate different to the Standard rate, you can:
- use the Element Groups to change rates for multiple elements from one screen, or
- go into the Element Properties screen of each element one by one