Gross Margin Scheme: Stock Records and Invoice Requirements

Scope of the checklist

This one-page appendix sets out records required under the Gross Margin Scheme (GMS). It does not establish that a particular sale qualifies for the scheme. For second-hand motor vehicles, the document expressly directs traders to the separate GST guide for motor vehicle traders and its more detailed record requirements.

Stock book: purchase details

Keep a stock book or equivalent record divided into purchase, sales and accounting headings. For each purchase, record a sequential stock number, purchase date, purchase invoice number and seller name. Include a unique identifier, such as a serial number, and a description of the goods, such as their make and model.

Stock book: sales and accounting details

The sales heading records the sale date, sales invoice number and purchaser name. The accounting heading records the purchase price, selling price, disposal method and margin on the sale. It also records the tax rate on the sale date and GST due, calculated as the gross margin multiplied by the applicable tax fraction. The checklist does not state a single tax rate for every transaction date.

Purchase invoices issued by the trader

When buying from an individual or supplier that is not GST-registered, issue a purchase invoice containing the seller’s name and address and your own name and address. Include the sequential stock-book number, day-book number, invoice number, transaction date, goods description and unique identification number, and total price.

Sales invoices for goods sold under GMS

The sales invoice must contain your name, address and GST registration number, together with the buyer’s name and address. Include the stock-book and day-book numbers, invoice number, invoice issue date, goods description and unique identification number, and total price.

The invoice also needs the scheme notice prescribed in the source: the goods are sold under the GST Gross Margin Scheme, and neither seller nor buyer may claim input tax on them. Use the exact required wording in the official checklist when preparing the actual invoice.