HOW DOES GST WORK?
As a consumer, you are very familiar with the extra tax added at the cash register and it becomes part of the cost of living. However, as a business person, you don’t pay GST on what you buy for the business. Keep you receipts and the government will refund it to you. However, for most of what you sell, you are required to add GST and send what you have collected to the government. One is offset against the other. Usually, you will have collected more than you have spent and so you will have a net amount to pay. If your revenues are below $30,000 per annum, you don’t have to register but, in most cases, it’s a good idea anyway because you can recover whatever GST you have spent on your purchases. If your annual revenues are below $500,000, you can register to pay GST once a year but after the first year, you will need to pay quarterly instalments. It is also a good idea not to hang on to government money that doesn’t belong to you because that can get you into all sorts of trouble. For
Related Questions
- The Federal Government has agreed to contribute approximately $160 million (excluding GST) and the State Government $50 million (value in kind). How will ongoing costs of the facility be funded?
- What are the methods that I can use to report GST on my activity statement?
- Is GST payable on shipping charges?
