Re: GST on imported goods
First and foremost, you cannot charge GST unless your business is registered for it. Registration is mandatory if your annual turnover is >$75K, and optional if below that. It doesn't make sense to register if you don't need to, because to do so makes you an unpaid tax collector and will cause you to increase your prices or take a 10% drop in your profit margins.
Originally Posted by Ms_X
Ideally, you should be speaking to your accountant about this (if you don't have one, and your turnover is over $75k you probably need one 'else you'll be spending all your time with tax/legal compliance and your core business will suffer.
If your turnover is less than $75k then you are best to simply pass any GST charges (if/when applicable) over to your customers (without adding your own GST, and with no option to claim credits). ..
Once registered as a GST business you don't get any choice as to whether your collect/charge GST or not... it is assumed that all sales within Aust are GST inclusive, and it will further be assumed that you have added/collected the GST, and you will get have to pass the full 10% back to the ATO (even if you never collected it in the 1st place). It is up to you to make sure you don't bear this full cost by claiming back the difference in input credits.
Sound confusing? It's Not really - but as I say, if turnover is under $75k stay clear of GST.. it will cost you.
If your turnover is over 75k you need an accountant.. his/her fees will be offset by the many tax savings thay can provide, and they are also tax deductable.
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