Australian Companies are required by taxation laws to collect and submit GST into the Australian Tax Office. Goods and Services Tax (GST) is 10% of Gross Invoice value levied on all types of goods and services sold subject to some exceptions. Any company can claim for GST credits, if it has submitted GST for any services or goods which are bought for business purpose. If the same goods or services are to be used fully or partially for personal use, then whole GST cannot be credited. Instead, the amount to be used only for business purpose can be credited.
For claiming GST and getting GST Credits, a company should know which services or sales are subject to collection of GST. For your ease, we have summarised different types of sales in the table given below:
For claiming GST and getting GST Credits, a company should know which services or sales are subject to collection of GST. For your ease, we have summarised different types of sales in the table given below:
Fig: (Collecting and Claiming GST on various types of sales, source: ATO Website)
The services which are GST free include:
• basic food for human consumption, for example, fruit, vegetables, plain milk and bread • exports
• some health services and education courses
• some activities of charitable institutions
• childcare
• religious services
• water and sewerage services
• sale of a going concern - for example, a business. As per the Australian tax law, being a company, you are required to mention the amount of GST on all invoices greater than $82.50 (including GST) or if your client requests for the same. All companies can report their GST on the activity statements sent to them by taxation office or they can simply choose to:
• pay quarterly instalments and further lodge an annual gst return;
• Report and pay their GST once in a year, if voluntarily registered for the same.
Companies which are not registered for GST are liable to pay additional taxes including GST. So if your annual turnover is more than $75000 or more, please get registered for GST and avail deduction in taxes. To get more clarity on this, please call a registered tax agent today.
The services which are GST free include:
• basic food for human consumption, for example, fruit, vegetables, plain milk and bread • exports
• some health services and education courses
• some activities of charitable institutions
• childcare
• religious services
• water and sewerage services
• sale of a going concern - for example, a business. As per the Australian tax law, being a company, you are required to mention the amount of GST on all invoices greater than $82.50 (including GST) or if your client requests for the same. All companies can report their GST on the activity statements sent to them by taxation office or they can simply choose to:
• pay quarterly instalments and further lodge an annual gst return;
• Report and pay their GST once in a year, if voluntarily registered for the same.
Companies which are not registered for GST are liable to pay additional taxes including GST. So if your annual turnover is more than $75000 or more, please get registered for GST and avail deduction in taxes. To get more clarity on this, please call a registered tax agent today.
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i really like this blog. thanks for sharing this informative blog with us. its really useful for me. i appreciated your blog and highly recommended to people who want to know about GST. GST Services Brisbane
ReplyDeleteThanks for this vital information on how GST works. It's very helpful. JSM Accounting Group provide payroll services in Brisbane that allow your business to pay employees correctly and manage their taxes.
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