Home – New Forums Starting your journey Being registered for GST & affecting my customers claiming deductions?

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  • #986629
    kellylouise39
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    Hi all.

    We are beginning a retail business with heath care professionals as our customers. As our product is tax deductible for them, does being registered for GST or not affect our costumer’s ability to claim their purchases at tax time?

    Our GST turnover will be below the threshold however we are unsure if we should voluntarily register for GST.

    Thanks for any clarification!

    PS. I am new to this community and it is a great source of information so far!

    #1158793
    bjmyers
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    Hi Kellylouise39,

    Income Tax and GST are two separate taxes. Being registered for GST does not impact your customers ability to claim a tax deduction for buying your product. If they use it in their business, then they are able to claim the expense.

    It does effect whether they can claim back GST on the purchase. If you aren’t registered, you don’t collect it from them and they have nothing to claim back in their quarterly BAS return.

    Hope this is of use to you.

    #1158794
    StellarScott
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    Hi Kelly

    Remember the GST threshold is $75,000 per rolling 12 months based on turnover.
    So if you believe you’ll be selling $6250 per month in the short to medium term you might find it advantageous to register. Especially as your client base can claim the GST and you can also claim all your credits

    Good Luck

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