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Gst/bas??

Discussion in 'Starting a business' started by shanewall, Jun 24, 2011.

  1. shanewall

    shanewall New Member

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    Hi everyone, I started a business 6 months ago and won't be anywhere near the 75 000 mark in sales. I registered for GST, and am wondering, is that something I should have done??? My sales will probably only be $20k tops for the year. If I am registered is it possible to deregister? Also, do I need to do a BAS?? They sent me one yesterday and I just have no idea what to do with it! I have read that you can deregister for GST but I don't seem to be able to find how to actually go about actually doing so. I am starting to get very frustrated, please help!!

    Thanks :)

    Shane
  2. Beautician

    Beautician Active Member

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    Yes, you do need to do your BAS statement.
    And if you've been charging GST then yes, you do need to be and remain registered. To take GST and then not remit this to the government is, well, not a good idea.

    In this particular instance, what you really need to do is to seek and find an accountant right away.

    After you've cleared your tax obligations with your accountant, go to your nearest Business Education Centre (BEC) and attend a few business workshops to bone up on your responsibilities as a business owner.
  3. JacquiPryor

    JacquiPryor Well-Known Member

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    Hi Shane,

    So, this is the first BAS they have sent you it would seem. Ring the ATO - you can deregister your GST status with them over the phone, and they will tell you whether you need to to do the BAS that arrived, or whether they can "back-date" the deregistration.

    Or - visit http://www.ato.gov.au/businesses/content.aspx?doc=/content/13541.htm&mnu=43129&mfp=001/003, which outlines different options of cancellation of various things, including GST Registration.

    I suspect you might still need to complete the BAS or the period you have been GST registered.

    Have you been keeping accounts records (i.e. sales and purchases, and wages if applicable)? If you are not comfortable doing your own BAS, go to a bookkeeper or an accountant with your full accounts sales/purchase records for the period of trade so far and they can help you lodge it. The BAS is basically where you report the GST you have paid out to suppliers, as well as GST you have collected on sales (and, if applicable PAYG tax on wages) - the balance of these figures basically works out how much you owe the ATO, or how much they owe you.

    (I'm not a bookkeeper but run the books/complete the BAS for our office, so the above's based on my understanding - not as account advice). If nothing else, hope the link to ATO above helps!

    Good Luck! :)
    shanewall likes this.
  4. shanewall

    shanewall New Member

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    Thankyou Jacqui, your advice has put me a little more at ease! I actually started my business a year ago but its only been the last 6 months I've gotten it going properly. I have had 2 BAS statements previously, but reported them both as 'nil'. This is all so difficult!!
  5. shanewall

    shanewall New Member

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    But what if I haven't been charging the GST (I haven't)....
  6. Beautician

    Beautician Active Member

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    You will still need to complete the BAS statement for the registered period.
    Jacqui's advice is fine but only if you have not yet harvested any GST.
    This is why an accountant comes in handy. You could have avoided this stress for around $50 and then claimed that cost as a business expense.
  7. JacquiPryor

    JacquiPryor Well-Known Member

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    Thanks Beautician - years ago I was registered for GST and was able to de-register at a later stage, but I had always had nil reportings - I assumed so long as your obligations were reported/updated you could then de-register, but am guessing from your post not so, so thanks for helping me learn something new today! (Hence why disclaimed my last post as not being advice :)

    Shane, if you have been reporting Nil in previous statements, when perhaps were not supposed to and now have sales to report during a period where you are registered, you really need to get an accountant's input I think, for your BAS but also for end of financial year reports and returns (which are separate to your BAS) to make sure you balance out and report and claim all that you should. Like Beautician said, this shouldn't be too expensive and would be well worth it I think - this way you will be on a clear page moving forwards.

    Best of luck with it.
  8. Beautician

    Beautician Active Member

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    No, no, your advice was good. I was just saying that in certain circumstances (ie if you've taken GST) it may not be applicable, that's all. In hindsight, what I should have added is that I went through all this with my accountant. As soon as the government gets a whiff of money they think they should have, they're onto it like a fly to a pile of...honey. :)

    Exactly. What my accountant said. Because the next question will be who you were selling to if you did not take GST and whether you were entitled to make a sale exempt of GST.

    Ah, GST. It's just the gift that keeps on giving isn't it. :D
  9. jetbookkeeping

    jetbookkeeping Member

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    Hi Shane,
    Some great answers already about how to fix your current situation.

    I want to add something regarding your other question - should you have done it.

    Here are two reasons for registering for GST while earning under $75,000
    1. You make a large capital investment and can claim the GST back.
    2. You are in a profession that does not have to charge GST - e.g. Physiotherapists.
    In both instances there is a possible financial benefit. Speak to your accountant or BAS agent to work out whether that benefit is higher than the cost of compliance (e.g. doing the BAS returns).

    The biggest reasons not to register for GST is if you have individuals as clients. They cannot claim GST, so when you do not charge for it, your services cost 10% less for them (or you make 10% more profit).

    Alexander
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  10. Marc D

    Marc D Member

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    Hi All,

    Can i just correct something above. The government doesnt care whether you charged the customer for GST separately or not. If you received $100 from a customer and you are registered, the government sees that payment as $90.91 for you and $9.09 for them and if not registered the $100 is yours and nothing for government. But then you cant claim back any of the GST if not registered.

    Regards

    Marc
  11. fiona@vas

    fiona@vas Member

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    ...and now is a great time to be thinking about getting your books in order for the next financial year. There are many bookkeepers and accountants in this forum or depending on the type of business you have, one of the online accounts solutions might work for you.

    Solid financial information is a very important part of getting through the first three years of being a new business and removing the angst around your accounts lets you focus on your core business.
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