We get a lot of questions about small business and GST. Registering for Goods & Services Tax (GST) has never been easier. The Australian Taxation Office (ATO) provides a range of different avenues to register for GST, making it a hassle-free process.
How do you know if you need to register for GST?
If your business has an annual turnover of $75,000 or more, it’s necessary. If your business makes less than that, registering for GST is optional.
To complete your GST registration you need to have an Australian Business Number (ABN). If you are just starting up your business and are applying for an ABN, you can use the same application form to apply for GST. You are required to have an ABN to be part of the GST system.
The team at Femia Accountants Perth are happy to do this on your behalf. Once the ATO has received your GST registration, you will be notified in writing confirming your registration details, including the date your registration is effective from and your ABN (if you have applied for one).
As a GST registered business, there are certain tax obligations you need to fulfil.
Generally speaking, businesses registered for GST include GST in the price of sales to their customers (10 per cent) and claim credits for the GST included in the price of their business purchases.
You need to report and pay GST amounts to the ATO, and claim GST credits by lodging business activity statement (BAS) or annual GST return. Chat with the Femia team to find out more about this and how we can assist with this and take the pressure of you and your business. Be sure to meet your BAS commitments by the due date to avoid penalties and interest.
If you’re unsure about the GST process or need guidance, call us now and one of our team can talk you through it.
Plus we are about to launch some information sessions and webinars on BAS and other business subjects. Sign up to our newsletter now and stay up to date with Femia news and events!