If you are a business owner in Australia, it is important to know about the Australian Goods and Services Tax (GST) Registration. This post will go over what GST registration means for your company, how to register for it, and what are the requirements.
What GST Registration Means For Your Company?
a). If you have a turnover of more than $75,000 per year and do not hold an ABN, then you must register for GST.
b). You need to charge your customers the correct amount in GST by adding it to the price or invoicing them. This is called “passing on” the tax that has been charged to them (even if they don’t pay).
c). You will be able to claim back credits when filing returns on your income tax return every financial year, which can offset any additional costs incurred during taxation periods.
What Are The Requirements For GST Registration?
To register for the GST, a business has first to meet certain criteria. The GST registration requirements depend on various factors such as turnover and whether you’re a large or small business entity.
Once these conditions are met, you can apply for registration:
GST Number Application Form – Australian Taxation Office. You will also need to complete an application form that asks questions about your organization’s structure and purpose before being accepted into the system.
In general, if your annual turnover is less than $75 000, it doesn’t matter how many people work within your company – only one person needs to be registered with AUSTRAC. However, if it’s above this figure there needs to be at least one GST registered person for every $75 000.
How Do I Calculate My Turnover?
Your turnover is the total of all sales you’ve made in an income year, including any other types of business revenue. This includes retail sales and wholesale transactions and services supplied by your company, such as rent or commissions received from letting agents.
It must also cover goods purchased after being sold within 12 months with no GST applied (for example if they are second-hand). To work out how much money you’ve earned during a financial year, simply add up everything that has been paid into your bank account over this period – even small payments like cash deposits or cheques sent through the mail count towards your turnover.
How To Register For GST?
GST registration is a must for Australian businesses. This is because the tax rate in Australia is currently at ten percent, which means that every business should be registered with the government and pay its share of corporate taxes.
If your company doesn’t have an accountant or bookkeeper, you can apply online to do so yourself.
You will need to include some information about your company, such as what type of product it sells and how many employees work there, before making any final decisions on whether or not applying for GST is right for you.
There are a lot of things you need to consider when it comes to GST registration in Australia. Of course, your Australian business can register and pay GST, but make sure that the amount of money you spend on these registrations will be worth the time and effort. If not, then maybe you should reconsider whether or not this is necessary for your company.