Tax has always been a part of our daily lives. GST or Goods and Services Tax is a kind of tax that applies to almost all the goods and services that are sold by businesses. In Australia, it is an added 10% tax to any goods or services that are sold in the country.
If your business has all the requirements to get registered for GST, you’ll need to add 10% tax to the price of your product or service to collect it from your customers. Just like other taxes, you also need to send this to the ATO on its due date. Confused whether you need to get registered for GST or not? Read along to learn more.
Do You Need to Register?
Not all businesses are required to get registered for GST. There are certain requirements that your business should have which determines whether it needs to be registered or not. Having just one of these characteristics makes it essential for your company to register for GST.
First, your business should have GST revenue of $75,000 or more. If it is a non-profit organization, it has to have $150,000 or more GST revenue. Another factor that makes you qualified for this is when you provide travel services such as taxi. If you don’t have either of the three, then GST is just an optional choice for you.
When Do You Need to Register?
Before scheduling yourself to register, do a monthly check first if your business will reach or exceed the GST turnover threshold. If you reach or exceed the threshold, you should go and register your business for GST within 21 days of the turnover. However, if your business doesn’t really meet the requirements or is not included in the type of industries that should register, signing up for GST is just an option.
Different Ways to Register
There are actually plenty of ways to enter for GST. First thing you need to do in order to get registered for GST is to get an ABN (Australian business number) for your company. You can get an ABN during when you register your business name for the first time. When you have an ABN, you can now get registered for GST in any way that suits you.
You can do it over the phone, through a registered agent, through the corporate portal, or via a NAT 2954 form. When your application is successful, you’ll get a notification containing your registration details and until when your registration is effective.
What Happens If You Don’t Register?
If you don’t register immediately yet you are required to register our business, you’ll be required to pay for the amount of GST that was due ever since the day that you need to register. Aside from that, you’ll also be charged with interest and even penalties.
GST is an essential part of owning a business. There’s no need to worry about this since you only need to register your business once.
