Good and Service Tax (GST) – What You Need to Know
In Australia, goods and services tax (GST) accounts for 10% on most goods, services and other items sold in Australia. Normally, officially established businesses and other organisations – with an ABN- register for GST to include it in the price they charge for their goods and services and to claim credits for the GST they pay for the goods or services they buy for their business. However, there are a few things we would all need to look out for before making any claims.
If you have a business with a GST turnover of $75,000 or more ($150,000 or more for non-profit organisations) – you need to:
• Register for GST
Register online, by phone or through your trusted agent within twenty-one days of your GST turnover reaching the threshold.
NOTE: Taxi or Uber driver need to register regardless of their turn over
• See whether your sales are taxable
Which means that all the goods and services you might be selling in Australia are taxable unless they are GST-free or input taxed, such as financial supplies (landing money or the provision of a credit card fee, renting or selling residential premises)
• Issue tax invoices for your taxable sales
Which you would give to your GST-registered or non-registered customers who buys a good or a service off you of more than $82.50 (including GST)
If a customer asks you for a tax invoice, you must provide one within 28 days of their request.
• Claim GST credits for the GST of your business purchases’ amount. This is called an input tax credit, or a GST credit
CLAIM FOR GST CREDITS IF:
1. The purchase you made is solely or partly for your business only
2. The GST is included in the purchase price
3. You have proof of purchased item payment
4. Your goods’ supplier – with an ABN – gave you a tax invoice with a purchase cost superior to AU$82.50
GST OF PRIVATE PURCHASES WITHIN YOUR BUSINESS:
The GST and purchase for private use can only be claimed for the amount spent for business purposes.
Account for GST, therefore, you have the right to issue tax invoices to your customers, collect the GST and send it to the AOT along with your BAS – Business Activity Statement, which reports goods and service tax GST, pay as you go PAYG instalments, PAYG withholding tax and various other taxes.
While, our team of accountants at Online Tax return, hope you find this information helpful to your own tax practices, we’d like to encourage you to contact us shall you require further assistance on this matter.