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Zachwith(Newbie)Registered Tax Professional
26 Apr 2024

We had a tradeperson complete work and submit an invoice including GST. They then said there was an issue with their business account and could we pay into their personal account. We paid the invoice amount less GST into the personal account but they are now chasing the GST amount asking it to be paid into the business account. Only the business is registered for GST not the person individually. As payment was made into the personal account are they legally allowed to chase us for the GST?

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1,872 views
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Taxduck(Taxicorn)Taxicorn
26 Apr 2024

Yes. If the tradesperson is a sole trader there is no requirement for them to have a separate business bank account. They can operate under their personal account if they wish.

See link (separate accounts)

https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/record-keeping-for-business/detailed-business-record-keeping-requirements/running-your-business-records/banking-records

Question: If you paid cash or cheque would you not pay the GST on the invoice?

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
26 Apr 2024

Yes. If the tradesperson is a sole trader there is no requirement for them to have a separate business bank account. They can operate under their personal account if they wish.

See link (separate accounts)

https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/record-keeping-for-business/detailed-business-record-keeping-requirements/running-your-business-records/banking-records

Question: If you paid cash or cheque would you not pay the GST on the invoice?

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Can someone ask you to pay an invoice into their personal account and GST into their business one? | ATO Community