The Goods and Services Tax is an indirect broad-based consumption tax. It is a value-added tax levied on most goods and services sold for domestic consumption. It is paid by consumers but it is remitted to the government by the businesses selling the goods and services. The 10% goods and services tax (GST) started full operations in Australia on 1^st July 2000.00

In order to receive GST credit, the entity must register with the Australian Taxation Office. The tax period of the GST is normally monthly or quarterly. A monthly tax period must be used if:

• Your GST turnover is $ 20 million or more or
• You have a bad tax history

There are three types of exemption from GST supplies outside the GST system, GST- free supplies & input taxed supplies.

GST should be paid on “taxable supply”. “Taxable supply” is not limited to a sale, and covers a wide range of transactions. For there to be a taxable supply, the following requirements must be satisfied.

• There must be a supply
• The supply must for consideration
• The supply must be made in connection with an enterprise carried on by the supplier
• The supply must be connected with Australia
• The supplier must be registered or be required to be registered.

An entity is normally required to register for GST if its “GST turnover” is $ 75,000 or more. If you are a ride-share or taxi driver, you must register for GST if your “GST turnover” is greater than $ 1.00.  In the case of not- for profit bodies, the registration threshold is $ 150,000.00. If you need to register for GST, you have to register within 21 days. Backdating of the registration means that you have to account for GST on taxable supplies you made since that earlier time, even though you may not have allowed for it in your prices.

For further information, please contact  Noble Tax Group.