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yourvirtualboard
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Hi Matt,

Exciting times!

There really are two sides to GST – one is that you charge your clients and the other is you pay GST on most of what you’d be buying. Registering for GST allows you to claim the GST you’ve paid for goods and services from the GST your clients have paid and then pay the difference to the ATO.

Also this would be a good example of talking to someone like an accountant or advisor before going ahead with things, as your van and equipment purchases would have GST and depending on how you bought them (method of finance) would depend on how you got the GST back – a chattel mortgage for instance would see you claim the whole GST component back in one payment (great for cash flow when starting up).

It’s still a good idea to have a chat to an accountant / advisor who could clear up a few things for you. Also I’m sure Burgo will have some good advice you on the carpet cleaning side of your business.

After reading your post again and the “I doubt my turnover will be over 75k so I initially didnt worry too much about registering for GST” comment – are you not setting limits before you begin? If you know what an average clean costs and then divide $75k by that – you would get a good indication of whether you can reach the target also if you get a few corporate accounts (who shouldn’t be influenced by whether you’re GST registered or not but being registered does offer an impression of scale), wouldn’t that add up pretty quickly?