Specific Issues Impacting Small Business -> Tax
GST Required or Not?
|
||||
| Effort Index How complex / Time-Consuming is this issue for you to deal with? | ||||
| Partnership Index How much support should you get from service providers on this issue? | ||||
| Priority Index How important is this issue to the success of your own business? |
 by Numbercruncher on 07 Nov 08 17:15 |
If you are not registered for GST then you cannot charge it and would be issuing your client with an Invoice rather than a "tax invoice". For smaller businesses who wish to register but have not reached the $75K turnover a good alternative is to register for an annual GST return. That way you only have to submit a BAS return when your tax is due
Helen
Helen
| by coremind on 04 Apr 08 08:22 |
Another thing to consider is whether your customers are businesses or consumers. If they are businesses, GST isn't really going to matter - they just claim it back. If they are consumers, however, not charging GST actually makes things 10% cheaper, which should correspond to you either being able to charge 10% more, or get more work.
Consider this in conjunction with the advice already given on turnover, purchases and accounting factors.
Regards,
David Kellam
Director
CoreMind
www.coremind.com.au
Consider this in conjunction with the advice already given on turnover, purchases and accounting factors.
Regards,
David Kellam
Director
CoreMind
www.coremind.com.au
| by MYOB on 11 Mar 08 21:18 |
I run a professional services business from home, so I have very few purchases, and even though I assist people with their GST, I am not registered.
If you purchase from someone like me, allocate a tax code of GNR (GST Not registered) and report it at G14 on your BAS.
If you start the financial year, and do not think you are going to hit the $75K turnover mark until the 10th month, you don't need to register until it looks like you are definately going to hit it.
If you purchase from someone like me, allocate a tax code of GNR (GST Not registered) and report it at G14 on your BAS.
If you start the financial year, and do not think you are going to hit the $75K turnover mark until the 10th month, you don't need to register until it looks like you are definately going to hit it.
| by Jackson on 27 Feb 08 09:04 |
It's true that you are not required to register for GST if your turnover is less than $75,000 per year (previously $50K).
By opting out you miss out on claiming GST credits paid on purchases etc. but the savings on administration could well cover this. It can also save you a lot of stress in managing tax debt down the track if you are busy or not inclined to bookwork.
By opting out you miss out on claiming GST credits paid on purchases etc. but the savings on administration could well cover this. It can also save you a lot of stress in managing tax debt down the track if you are busy or not inclined to bookwork.
Powered by phpBB © 2001, 2002 phpBB Group
Latest Topics
