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Re: Registering for GST?

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Hi There,

 

I have a quick question about registering for GST. Currently running a small business (online store) on the side, just starting out. It definitely won't turn over $75,000 in the first 12 months. I'm currently registered as a 'sole trader', and my online store will sell products purchased through wholesalers. Even though I still charge tax on the sale of those products, do I need to register for GST?

 

Also, what is "GST credits"?

 

Thanks in advance! 

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ATO Certified

Devotee

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Hi there @DrewColl


Welcome to the ATO online community.

Your GST turnover meets the registration turnover threshold if your current GST turnover or your projected GST turnover threshold is at or above the turnover threshold $75,000

Your current GST turnover is the value of all the supplies (sales) you make during the current month and the previous 11 months. Your projected GST turnover is the value of all of your sales you make during the current month and the next 11 months.

 

Please note you must register within 21 days from the time they meet the registration requirements.

This page is very helpful - https://www.ato.gov.au/non-profit/your-organisation/gst/gst-registration/

 

In regards to GST credits, You must be registered for GST to claim GST credits.

You can claim a credit for any GST included in the price you pay for things you use in your business. This is called an input tax credit, or a GST credit.

You claim GST credits in your business activity statement.

You can claim GST credits if the following conditions apply:

  • You intend to use your purchase solely or partly for your business, and the purchase does not relate to making input-taxed supplies.
  • The purchase price included GST.
  • You provide or are liable to provide payment for the item you purchased.
  • You have a tax invoice from your supplier (for purchases more than A$82.50

This information can be found here  - https://www.ato.gov.au/business/gst/claiming-gst-credits/when-you-can-claim-a-gst-credit/


Regards, Tracey

 

 

 

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
3 REPLIES 3

Best answer

ATO Certified

Devotee

Replies 2

Hi there @DrewColl


Welcome to the ATO online community.

Your GST turnover meets the registration turnover threshold if your current GST turnover or your projected GST turnover threshold is at or above the turnover threshold $75,000

Your current GST turnover is the value of all the supplies (sales) you make during the current month and the previous 11 months. Your projected GST turnover is the value of all of your sales you make during the current month and the next 11 months.

 

Please note you must register within 21 days from the time they meet the registration requirements.

This page is very helpful - https://www.ato.gov.au/non-profit/your-organisation/gst/gst-registration/

 

In regards to GST credits, You must be registered for GST to claim GST credits.

You can claim a credit for any GST included in the price you pay for things you use in your business. This is called an input tax credit, or a GST credit.

You claim GST credits in your business activity statement.

You can claim GST credits if the following conditions apply:

  • You intend to use your purchase solely or partly for your business, and the purchase does not relate to making input-taxed supplies.
  • The purchase price included GST.
  • You provide or are liable to provide payment for the item you purchased.
  • You have a tax invoice from your supplier (for purchases more than A$82.50

This information can be found here  - https://www.ato.gov.au/business/gst/claiming-gst-credits/when-you-can-claim-a-gst-credit/


Regards, Tracey

 

 

 

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time

Newbie

Replies 1

Hi Tracey,

 

Thanks for this - so confirming that I do not need to register for GST as my business will not turn over this in the first 12 months? 

 

Thanks,

Drew

 

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Devotee

Replies 0

Hi @DrewColl

 

That is correct :-), however, If you have charged GST you would need to be registered.

 

Regards, Tracey

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
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