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Buying stock from a non-GST registered business and selling as a GST registered business

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I am a small business registered for GST. I purchase most of my stock (used vehicles) from a non-GST registered business. When I sell the vehicle the purchase price includes GST.

How would I represent this information in a BAS Statement?

Thank you.
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ATO Certified

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Hi @Amy020,

 

It's interesting that the business you purchase the used vehicles from is not registered for GST.

 

An entity is required to register for GST if:

  • they are carrying on a business or enterprise, and
  • the GST turnover is at or above the GST turnover of $75,000.00 or $150,000.00 for not-for-profit organisations

 

The description you've provided for the business you purchase the used cars from doesn't sound like it would meet a GST exemption.

 

As a GST registered entity you will be required to charge GST when you sell the vehicle, unless an exemption applies.

 

Representing the information on your BAS:

  • The purchase of the vehicle at G10
  • The sale of the vehicle at G1
  • The total amount of GST (including any adjustments) you need to pay us for the reporting period at 1A

Which BAS period you report the purchase and sale on will depend upon your accounting method for GST.

 

Let us know if you have any further questions,

JasonT

2 REPLIES 2
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @Amy020,

 

It's interesting that the business you purchase the used vehicles from is not registered for GST.

 

An entity is required to register for GST if:

  • they are carrying on a business or enterprise, and
  • the GST turnover is at or above the GST turnover of $75,000.00 or $150,000.00 for not-for-profit organisations

 

The description you've provided for the business you purchase the used cars from doesn't sound like it would meet a GST exemption.

 

As a GST registered entity you will be required to charge GST when you sell the vehicle, unless an exemption applies.

 

Representing the information on your BAS:

  • The purchase of the vehicle at G10
  • The sale of the vehicle at G1
  • The total amount of GST (including any adjustments) you need to pay us for the reporting period at 1A

Which BAS period you report the purchase and sale on will depend upon your accounting method for GST.

 

Let us know if you have any further questions,

JasonT

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Newbie

Replies 0

this is what I want to know clearly.