Are the simplified accounting method turnover thresholds GST-inclusive or GST-exclusive?
Please note that the PDF version is the authorised version of this ruling. Preamble This document is a ruling for the purposes of section 37 of the Taxation Administration Act 1953. You can rely on the information presented in this document, which provides advice on the operation of the GST system. Answer The annual turnover thresholds for the purposes of the Determinations made under Division 123 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) are calculated on a GST-exclusive basis. Background Small food retailers have several simplified GST accounting methods available to them. These methods allow eligible small retailers to estimate their total GST-free sales and/or purchases at the end of each tax period rather than having to record each GST-free product as it is sold or at purchase. One of the eligibility criteria is that the food retailers have an annual turnover which is no more than the specified threshold for the relevant method. Explanation The threshold
