POS product tax codes: audit the catalogue before the BAS

Work through this sheet with your BAS or tax practitioner if your GST-registered business has a mixed product catalogue. It helps collect and test the decisions; it doesn't classify every product from a short label.

Build an evidence row for each product

Export the catalogue and retain an untouched copy. Include the stock keeping unit (SKU), full description, price, tax setting and location or sales channel. Add the relevant ingredients, preparation and supply circumstances where they affect classification.

The ATO's GST learning material uses the distinction between basic ingredients and a prepared sandwich to show why the finished product matters. It directs businesses to its food list and classification tools. A supplier's broad product category should be a starting point for a question, not the final reason for a GST setting.

SKU and supply	Treatment to verify	Test price	Evidence and check
B-01 plain packaged loaf, takeaway	GST-free under the stated example	$5.00	Confirm product and supply circumstances against ATO guidance
S-01 prepared takeaway sandwich	Taxable under the stated example	$11.00 GST-inclusive	Confirm preparation and inclusive-price setting
Mixed basket: one of each	Apply each confirmed item treatment	$16.00 total	Expected GST $1.00 if both classifications and prices are confirmed

Conditional fictional example for qualified review. $11 / 11 = $1 GST on the taxable inclusive-priced line; no claim that every bread or food product has this treatment.

Test a mixed basket and the export

Once the classifications are approved, run the basket in a vendor-supported test environment. Compare the item-level tax, receipt total, tax summary and exported records. A correct receipt doesn't guarantee that an integration maps the exported code correctly.

For the conditional $16 example, check $5 of GST-free sales and $11 of taxable inclusive sales with $1 GST. If the export sends all $16 to a taxable code, investigate the mapping. If it removes the GST-free line from sales entirely, investigate that too. Use the GST-free versus BAS-excluded guide to frame the code question with your practitioner.

Check changes and refunds

Keep a small list of products where preparation, packaging, serving location or composition changes. Ask whether the evidence and tax setting still apply. Record the effective date of an approved change so older sales remain explainable.

Run a full reversal of the test basket and then an item-only refund. The expected full reversal mirrors the original $16 total and $1 tax under the confirmed assumptions. Inspect whether the original transaction's treatment is retained when current catalogue settings differ. Have the practitioner resolve any tax-period or correction implications before changing old records.

Sign off exceptions before relying on the report

Give each unresolved item an owner and a question, such as an unclear ingredient description or a channel-dependent supply. Keep its source material and test references together. Don't mass-change all catalogue codes to make the report agree with a guessed target.

For a replacement system, carry the reviewed classification evidence into the POS migration checklist. Use the trial scorecard to check permissions and reporting, and the payments and POS hub for the connected close routines.

Key takeaways

• Support each classification with the actual product and supply facts.
• Test mixed baskets, refunds and accounting exports after code approval.
• Keep unresolved tax questions visible until a qualified reviewer resolves them.

SKU / full product description / ingredients:
How and where supplied:
GST classification and supporting source:
Reviewed by / date:
POS inclusive/exclusive price setting:
Tax code and export mapping:
Mixed-basket receipt / refund test:
Expected vs reported sales and GST:
Unresolved products and owner:

Where to get help

• ATO: GST-free items and services