How does GST work?

< How does GST work?


	GST for Small Business GST or otherwise known as Goods and Services Tax is a tax on all Taxable Goods and Services in Australia The Tax was introduced in July 2000 and the rate is currently set at 10%. Not all Goods and services are taxed. GST must be remitted to the ATO either on a quarterly or monthly basis. See BAS Essentials for more information on BAS reporting requirments. GST Tips To calculate the GST, divide the GST inclusive price by 11. ie $110 divided by 11 = $10 To calculate the price before GST was added, divide by 1.1. ie $110 divided by 1.1 = $100 To add GST to a price multiply by 1.1. ie $100 times 1.1 = $110 Non Taxable & GST Free Goods and Services There are goods and services that are classed as tax free. They are reported on your BAS but there is no GST on them and you certainly can't claim any tax inputs. Here are some examples of Tax Free Supplies: Milk,Coffee, Tea Water Council Rates (Directly issued by the council Fruit and Vegetables (fresh) Fresh Meat Tax Free Supplies are reported on your BAS in G11. If you sell Tax Free Supplies, you report these in G3. Non Taxable Supplies include the following: Wages Drawings Loan Repayments and HP's Superannuation Payments and Payroll Taxes Depreciation Any Tax Payments (GST,PAYG,PAYGW, WET) Credit Card Payments NT Supplies are NOT reported on your Business Activity Statement. GST Invoicing Requirements If you are registered for GST, you must supply a TAX Invoice to your customer. The tax invoice must have yoru ABN, Name, Address, the words "Tax Invoice" and must clearly state the GST. If your supply a GST FREE supply or are not registered for GST, you must make it clear on the invoice that it is a GST Free supply. It is often wise to check your suppliers ABN Numbers to see if they are registered for GST. (Especially Contractors, Tradies) Go to Australian Business Register and type in the ABN. I often do spot checks on new contractors and it is not unusual to find that they have charged GST on their invoice, BUT are not registered for GST Return to ABN and GST Registration from GST Essentials	Popular Links ATO Business Names Registration BAS Essentials Business Setup ABN & GST Registration
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