Originally Posted by BrightBiz
Sorry if this sounds like a daft question, I am almost considering registering for GST anyway but it will probably be a couple of years before I grow my business over $75000 so not sure it's worth the extra paperwork just yet.
For a business to claim the GST component of the $500 payment, your account needs to be headed "TAX INVOICE".
If it is not, they cannot claim any GST on the payment.
If you are not registered for GST, your invoice cannot have the heading "TAX INVOICE".
So - in your situation, your invoice should just have the word "INVOICE" at the top.
If they claim GST - that's their error.
If they ask you about "Is GST Included?", then you should say that you do not charge GST.
Might be an idea to just register for GST, even though you aren't over the threshold.
Cheers, Eric G.
P.S. And if your ABN is not provided to them. they are supposed to withhold around half of the payment as tax.