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Re: ABN quoted but GST not registered

ATO Community Support

Replies 0

Hi @Tanzy


Your easiest correction will be to register for GST as of the date you've been collecting GST from your clients. This also means you'll be able to claim GST paid on invoices you've paid for the business.


You can do this online, but when you backdate your registration, you'll need to contact us to issue the activity statements.


You can read how to register on our website.


Replies 3



Please advise if we purchase from a seller who is not required to register for GST (turnover below the threshold) but quoted an ABN, do we ask the seller to submit together with a copy of the invoice a "Statement by Supplier" and withhold 47% tax from the total purchase value? Please advise if there is other alternative.

Former Community Support

Replies 2

Hi @Kim1


Thanks for your question. The answer for this one is no they don't need to also include a Statement by Supplier or withhold the higher amount of tax. A statement by supplier is only required if they have not provided an ABN.


Thanks and have a nice day!



I'm new

Replies 1

Argh, so frustrating! please answer the questions. 


Everyone is asking about this situation: 

1. Invoicing (invoicee) is receiving less than 75K per year 

2. It is a 'regular invoice' no Tax or GST is referenced 

3. Invoicee is not registered for GST. 


What happens here! 
Q1. Is the Service exempt from GST? 

Q2. The ATO operator said I (the invoicee) would only get paid 63% of my invoice, as the payer customer would withhold 47% as tax. 
Q3. Does the customer or the invoicee pay the GST? Doesn't make any sense.  

ATO Community Support

Replies 0



Q1. The party who is invoicing doesn't charge GST if they're not registered for GST. GST should not be included in the sale. The invoice will just show the total due and won't have a separate GST component.


This doesn't mean they're exempt from GST because they still pay GST if they themselves are charged GST from a GST-registered business. It simply means they're not required to collect GST on our behalf.


All invoices that do contain GST are required to show a separate GST component.


Q2. This appears to be confused with PAYG withholding tax. This is a separate and unrelated tax to GST.

If a service doesn't quote an ABN on their invoice or other documents for goods or services they provide then the person paying the invoice maybe required to hold back 47% of the amount which they submit to us. This will count towards annual income tax.


Q3. No one pays GST if the business providing the service isn't registered.


A customer pays GST only to GST-registered businesses who then pass it on to us through their Business Activity Statements.


Hope that helps.