Goods And Services Tax Accounting Services Perth

Goods and services tax (GST) is a 10% tax that applies to most goods, services, and consumer items that are sold or consumed in Australia. Individuals (sole traders) and businesses in Australia with an annual revenue turnover of more than $75,000 must register for GST. Registering for GST enables applicable businesses to charge GST on sales and claim GST credits on purchases that are made for business.

Registering and charging GST is just one part of the equation. Once a business or sole trader is registered for Goods and services tax, they must:

• Issue tax invoices that include specific details about the business and the goods or services being sold.
• Lodge Business Activity Statements (BAS) and report and pay GST that is collected (this may be monthly, quarterly, or annually depending on the turnover and financial situation of the business).
• Claim credits for GST on businesses purchases ($82.50 minimum purchase amount)
• Keep accurate records of sales and business expenses