It can be hard to know when to register GST for your business. Were here to break it down in simple terms on what do to.
Many businesses in Australia are registered for Goods and Services Tax (GST) however, there are businesses that fall below the $75,000 GST turnover (gross income from all businesses minus GST) and do not voluntarily register for GST. There are many ways to see and organize your business.
If a business is not registered for GST, they cannot charge GST on the invoice price nor can you, the invoice recipient, claim the GST credit on the purchase even if you have the invoice showing the GST amount.
Be careful, the ATO are asking questions!
You can easily check if the business is registered for GST or not and the date from when they were registered for GST by simply going on to the ABN Lookup page.
This is located at https://abr.business.gov.au/ and typing in the ABN of the business.
Next Steps
- What to do if you have been charged GST by a business that is not registered for GST and you have not paid the invoice amount?
A. Contact the business and ask that a new invoice be issued without the GST charge,
B. Do not claim GST in your Business Activity Statement (BAS).
2. What to do if you have been charged GST by a business that is not registered for GST and you have paid the invoice amount?
A. Contact the business and ask that the GST portion be refunded to you, and
B. Contact the business and ask that a new invoice be issued without the GST charge, and
C. Do not claim GST in your Business Activity Statement (BAS).
GST is a tricky area and the ATO are closely monitoring.
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