There are situations where the GST Act provides that a supply has taken place even though no goods or services have been supplied and / or no consideration has been paid
For GST purposes, these supplies are known as deemed supplies.
Common examples include gifting of goods purchased from GST-registered suppliers which cost over $200 per gift and disposal of business assets for no consideration.
The value of the deemed supply and the corresponding output tax must be reported in the GST return
Let Us Now See How To Raise A Deemed Supply Invoice Using Reach Accounting Software
1.Click on Income in the top tab menu and choose Invoice
2.Click on Add Invoice
3.The first tab will prompt you to choose the type of Invoice you choose to raise; Choose Deemed supply Invoice. Choose the appropriate tax Invoice template
4.The Invoice voucher entry is divided into three sections:
- The first section allows you to fill the basic Invoice details like date, terms, currency and due date
- The second section allows you to choose the products, description, quantity and value
- The final section allows you to enter dispatch details and set reminders for payment followup
5.Fill the details appropriately
6.Once done, you have to option to save the Invoice
7.On saving the Invoice Reach Software will automatically prepare the Deemed supply Invoice
8.The daybook, ledgers, trial balances and financial statements are automatically posted and prepared
9.It will also auto-populate the relevant tax codes in the GST forms so you will not have to prepare them manually later.
Leave a Comment