Your business must register for GST in Australia when your business has a GST turnover of $75,000 or more.
Usually, if you do more than $75,000 in sales, or expect to do more than $75,000 in the year, you will have to register for GST. The only exception to this general rule is if you provide taxi or limousine services to passengers, including if you drive for Uber, Lyft or Didi.
When you register for GST, you are required to prepare and lodge Business Activity Statements to the Tax Office, and you must charge 10% GST to your customers. This involves setting up your invoices and receipts to correctly record the GST charges.
Additionally, you will need to setup your accounting systems to correctly record how must GST you have charged customers.
Once you’re GST registered, you will be able to received a refund for GST you have paid on goods and services you have purchased for use in your business. The rules for claiming GST credits to offset the GST you must pay to the tax office are sometimes complicated, but a Registered Tax Agent such as Thornton & Associates can help you get the most out of your GST input tax credits.
Call us today to discuss registering for GST and how to claim GST credits for your business.
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