Businesses industries such as construction that make payments to contractors for building and construction services must report those payments to the Australian Tax Office (ATO).
These payments are reported using the Taxable payments annual report (TPAR). This is an annual report that provides details of taxable payments for building and construction-related activity.
You can track construction industry taxable payments in Exo Business, which will help you complete this report. For more information on taxable payments, see the ATO website.
Follow the steps below to setup in EXO Business to help you lodge the TPAR. Once all Creditors have been set up, you’re ready to file your Taxable Payments Annual Report.
1. Enable feature in Config Profiles
To enable the features for taxable payments, select the Track Taxable Payments to suppliers for building and construction-related activity Company-level profile setting.
2. Make sure company details are correct
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Go to Company > Company Details.
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Enter the street address. It must be a physical address and not a PO Box. This is an ATO requirement.
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You must complete the Locality, Post Code.
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Complete the Business Reference Number. This is also used for Bankfeeds, make sure this is correct or the other SBR features cannot be used. If required, request this number via Accounts ANZ
3. Ensure Filing staff member is set as the System Administrator in Config
Under Business Essentials > Implementation Notes, make sure you've completed the System Administrator Details. These will be submitted to the ATO as the filing agent.
4. Request for Software ID
Request for Software ID from the SBR screen.
5. Set the correct Creditor addresses and Purpose
Set for the relevant Creditor address field and Purpose to allow for ATO reporting.
To set the address, go to System > Display Names and choose the relevant address field.
To select the Purpose for ATO reporting, go to Details > Purpose.
We generally recommend using the Delivery Address fields (DELADDR1-6) for ATO filing.
If you cannot see the purpose in the dropdown list, this means the purpose has already been assigned.
6. (Optional) Make a hidden field visible to report on Locality
For ATO reporting, we use a hidden field TAX_LOCALITY in the CR_ACCS table to report on Locality. This field is used for reporting on exact suburb requirements. This is often different from the postal requirements.
By default, the TAX LOCALITY field is hidden, and is only updated by using the Geo-Location feature to confirm your creditor’s address.
To make it visible, you need to add an extra field to CR_ACCS. An example is below, if you're unsure about adding Extra Fields, please check with your Implementation Consultant:
7. (Optional) Turn on Geo-Coding checks for delivery addresses
Using the Geo-Location features of Exo Business confirms addresses to match the ATO required formats. We recommend having Always prompt for un-mapped delivery addresses set under company-wide profiles.
8. (Optional) Run a Bulk Update for Geo-Coding
Make sure Tax locality is filled in for all accounts, we strongly recommend running a Geo Coding update under Bulk updates in Exo Config.
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Go to Config > Admin > Bulk Update > Geo Coding.
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Select Creditors from the Update location for drop-down.
9. (Optional) Turn on Verification of ABN against online resources
The ABN and Business Names filed for Taxable Payments Annual Reporting must match the ABN Lookup results for businesses. Exo Business includes a feature for verifying the ABN number of creditors/Debtors against the ATO when you create/save an account.
To turn this on, turn on Verification of ABN against online resources in the User Profile section.
10. Set up Creditor Accounts for Taxable Payments reporting
For eligible businesses, you need to track the Taxable payments.
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Open the Creditors screen in Exo Business.
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Open the Creditor for TPAR reporting, go to the Details2 tab and select Track Taxable Payments.
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If you've turned on Creditor ABN Validation, you'll be prompted to verify ABN when creating new creditors or updating ABN.
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If you turned on Geo Location Prompts, you’ll see the prompt as below:
11. Make sure the libeay32.dll & ssleay32.dll are in the Exo folder.
The libeay32.dll & ssleay32.dll files will be installed automatically during the installation. If these files are missing, then you'll see SSL errors when filing. These two files will be present in the same folder as Exonet.exe and the date/version of these files is specific to your version of Exo Business.
If these files are missing, speak to your consultant/download them from the installation resources.