Correct an error in your GST return
When you can correct an error in your return
If you realise that you made a minor error in your GST return and submitted an incorrect GST return to us, you can correct the error in the:
- same taxable period and contact us in writing
- next taxable period and calculate the adjustment.
Important
We define a minor error as a simple arithmetical error or oversight. If the adjustment is more than a simple arithmetical error or oversight, you must use our disputes process and send us a Notice of proposed adjustment (IR770) within two months after the due date of your GST return.
Additional information
Disputing an assessment (IR776)
Correct the error in the same taxable period
You can correct the error in the same taxable period and contact us in writing, providing the following details:
- GST return and GST taxable period the error occurred in
- GST amount involved and what the amended figures should be
- the nature of the error, and
- why the change is necessary.
We will then amend your original GST return for you and send you a statement of account.
Important
Please do not send us your amended GST return.
If, after correcting the error, you worked out that you'll:
- have to make a payment to us, you'll be charged use-of-money interest from the original due date if the amount reassessed is over $100 GST
- receive a refund from us, we'll pay you use-of-money interest from the original due date if the amount reassessed is over $100 GST.
Additional information
- How interest is calculated
- Credit and debit rates for use-of-money interest
Correct the error in the next taxable period
Limits on making corrections
You can correct the error in the next taxable period by calculating the adjustment if the amount of the adjustment(s) is up to:
- $200 GST per error, for registered persons with an annual turnover up to $250,000, or
- $500 GST per error, for registered persons with an annual turnover of $250,000 or more.
Important
If the amount of the adjustments is above the thresholds you must contact us in writing. We will amend the original GST return for you and send you a statement of account and a letter if we're considering shortfall penalties.
Note
- The $200/$500 limit applies to the error(s) made in one GST return.
- You can correct errors from more than one GST return as long as the error(s) in each single GST return are below the $200/$500 limit.
Records you must keep
You need to keep the following details as part of your GST paperwork and make it available to us on request:
- The GST return period the error occurred in.
- The GST amount involved.
- The nature of the error.
- The GST return period the correction was made.
Note
You will not be charged use-of-money interest.
Example: One common error in several past returns
Mrs Jones operates a large clothing warehouse. She permits staff to take supplies for private use in lieu of wages payable. She omitted to make adjustments for GST on fringe benefits when filing her two-monthly GST returns, but her accountant identified the oversight when preparing the end of year accounts.
Mrs Jones’ staff take approximately $1,800 of goods per return period, so the GST adjustment for fringe benefits is approximately $200 per return period. This qualifies as a minor error because Mrs Jones’ annual turnover exceeds $250,000 and the return errors are less than $500 per period. She can make a $1,200 catch-up adjustment in the next GST return. She must keep details of the error with the current GST return work papers.
Our right to impose penalties
We reserve the right to impose penalties if the error to be corrected is not a genuine mistake. That is, the shortfall may be considered for penalties if we believe that the taxpayer intentionally attempted to overstate a benefit or understate tax by filing an incorrect first return. If we believe this may be the case we will need to request details as to why the shortfall occurred.
Find out more
Date published: 17 Apr 2007
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