Why it's important to check ABNs of suppliers
Something a good Bookkeeper should be doing is checking the ABN numbers of any Subcontractors/Sole Traders/Smaller operators to determine their GST status.
Depending on the industry you're in, you may also need this information for your Taxable Payments Annual Report which is due to the ATO in August every year.
I see it a lot, the supplier may have GST on their invoice but are not actually registered for GST. This happens when are requested by a customer to provide an invoice but are not familiar with correct invoicing procedures. Often they assume they should add GST to their invoice but when they aren't actually registered for GST, they are basically just pocketing the extra and you're being over charged!
Or on the contrary, they could be registered for GST but not charging it on their invoice, which means you are missing out on a GST credit (reduction) you can claim on your own BAS owed to the ATO.
If they don't quote their ABN on their Tax Invoice, depending on who they are, you may need to withhold the top rate of tax from their payment you make to them and send the withheld amount to the ATO. Or it can be easier to request a new invoice which has all the required information.
Here are some ATO links with more info:
https://www.ato.gov.au/business/gst/tax-invoices/
If you’re every in doubt or need more information, don’t hesitate to contact me and I will try to help.