As a business owner, it is important to know some aspects of taxes and accounting to ensure that your business is running smoothly. In Australia, there are some products and supplies that are subject to GST and it is important to note which is which when lodging your statements.
What is GST?
GST is also known as the goods and services tax; it is a 10% tax on almost everything that is bought or sold in the country of Australia. If you own a business, it is important to make sure that you understand how this tax works and that you are in compliance with all of the tax guidelines.
GST should be included in the price that is charged for goods and services; it is important to make sure that you know what the claim credits are as well for this tax and that you are able to show it as well to the government when required. It is important to emphasize that all business owners need to have a proper accounting of tax credits.
What Do I Need to Do For My GST?
If you own a business, and you do more than $75,000 in sales, you need to make sure that you follow the following guidelines to be in tax compliance:
1. You Need to Register to Accept the GST Tax! You can register to accept the tax on the portal or by calling the office.
2. You Need to Make Sure That You Know Whether Your Sales Are Taxable or Not! The reason for this is the fact that some of these goods are exempted from tax. GST needs to be included in the price of the
3. You have to make sure that you are able to issue tax invoices as well for all of your sales that are taxable. The tax invoices are important for everyone who charges the tax and for those who pay it.
4. You need to make sure that you are claiming tax credits as well for all of your business purchases.
5. You need to also make sure that you can account for all of your tax, and that means that you need to show what was collected as well as that you have paid what is required when it is due.
6. You will need to file tax business activity statements as well so that you are able to stay in tax compliance with all of the requirements of the government.
The Importance of being Tax Compliant
Tax compliance is something that is very serious and must be adhered to at all costs always. Being tax compliant now will save you money and also the time in the long term and ensure that you are able to know that you will stay ahead of the curve and be in tax compliance.
If you are not sure what you need to do about tax compliance it is important that you are able to work with an accounting firm to make sure that you are doing all you need to file your GST in the proper manner.
When you are working with a tax accounting firm, you will be able to rest easy knowing that you have access to the best options out there for your company and that you have taken care of all of the needs of your customers as well.
Still confused about goods and services tax? Contact Femia Accountants.