If you are a small business and your customers pay you electronically you need to read this.
Did you know new legislation means most electronic payments made from the start of this financial year (1 July 2017) onwards will be reported to the ATO automatically.
The ATO says these include:
- credit and debit cards
- payments made through a third party payment processor
- other types of electronic payments
The ATO says the first reports will include:
- payments processed in the 2017–18 financial year
- total monthly electronic payments processed by your financial institution or payment facilitator.
What does this mean for you?
It means electronic payments that your business receives from your customers will be reported to the ATO.
The ATO will use this data to match against their records. It will also be used to pre-fill tax returns to make it quicker and easier to lodge in the future.
For more information talk to us or go to https://www.ato.gov.au/Newsroom/smallbusiness/General/Do-your-customers-pay-electronically-/?sbnews20180619