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When to charge GST

If your small business is registered for GST (Goods & Services Tax), most of your sales in Australia will include GST.

Sales which include GST (taxable sales) are:
– made for payment (monetary or other)
– made in the course of operating your business (including any capital assets sold)
– connected with Australia

For these taxable sales, the business must:
– include GST in the price
– issue a tax invoice to the buyer
– pay the GST it’s collected when it lodges its activity statement

When not to charge GST
A business does not include GST in the price of goods and services that are:
– GST free – such as most basic foods, some education courses and healthcare products and services
– Input taxed – such as lending money and renting out residential premises.

Claiming GST credits
You can claim a credit for any GST included in the price of goods and services that you purchase for your business and use to make either taxable or GST-free sales. This is called a GST credit. You can’t claim a GST credit for the GST included in the price of purchases you use to make your input taxed sales.

This entry was posted on Tuesday, December 6th, 2016 at 12:15 am and is filed under tax. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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