Enter a tax free cash expense when tax like VAT or GST is not charged for the entire expense, or not charged for part of the expense. These examples and how to enter the cash expenses in Synergy are outlined below.
Example 1 - Entire cash expense is 'tax free'.
The cash expense did not incur any tax VAT / GST. The cash expense is an educational course, and tax (GST) is not charged for this type of expense.
Select the 'tax free' tax rate when entering the cash expense row, and the tax value will be automatically set to $0.00.
Example 2 - Part of a receipt is entered as 'tax free'
The cash expense is for items purchased from the supermarket. Not all items on the receipt have had tax charged, such as basic food items (like fruit and vegetables) have not had any tax applied. The total expense cost was $63.00, which includes $60.00 of supermarket items, and $3.00 of tax. The tax applicable rate is a 10% GST / VAT.
If you were to enter this expense as one expense line, then the cash expense total shown in Synergy would be $66.00 (incl tax). The tax is automatically calculated based on the tax rate selected.
In order to have the correct tax value calculated you need to enter this receipt as two cash expense lines. One expense line for the part of the receipt that is tax free, and another expense line for the part of the receipt that has tax charged. The table below shows what these cash expense lines might look like:
| Cash expense entry | Receipt cost (ex tax) | Tax rate | Tax value (GST / VAT) |
|---|---|---|---|
| Line 1 - taxable food | $30.00 | Tax applicable | $3.00 |
| Line 2 - non taxable food | $30.00 | Tax free | $0.00 |
| Total expense value | $60.00 | $3.00 |
Tip: Travel expense items are automatically set to be 'tax free'. If the travel expense item includes tax (GST) please enter this using the cash expenses tab.
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