Home – New Forums Money matters GST for online sellers?

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  • #997708
    heftzwecke
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    If I don’t want to get taxed do I have to register for GST? Which is more hassle and more paperwork or I have to up prices 10%? How do others work around?

    #1213639
    El Arish Tropical Exotics
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    Good read here: https://www.business.gov.au/info/run/tax/register-for-goods-and-services-tax-gst
    If your turnover is under $75,000 you don’t have to register. We did long before we had to because we were doing a lot of infrastructure building and got all the GST paid out back.
    I use QuickBooks Online so the amount of extra paperwork is very small, it actually keeps me on top of things.
    You don’t have to add 10% but you’ll get taxed 10% so it’s probably a good idea.

    #1213640
    Paul – FS Concierge
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    My BAS takes all of 10 minutes each quarter and it has a net positive impact on cashflow because I get ALL of GST paid on business purchases back.

    Just do it!

    #1213641
    bb1
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    Paul – FS Concierge, post: 255380, member: 78928 wrote:
    My BAS takes all of 10 minutes each quarter and it has a net positive impact on cashflow because I get ALL of GST paid on business purchases back.

    Just do it!

    This is extremely bad advise to give anyone without knowing the fundamentals of their business.

    Sounds great only takes 10 minutes, I get all my GST on business purchases back. Great do it, what are we all waiting for.

    But, if your business runs on very low business costs, you can’t actually claim much back. So it may not be a huge benefit at the end of the day.

    Then you need to consider how you are now pricing your jobs, will customers be happy to continue with your services when you add an additional 10% on the prices. You could suffer loss of clientele if you are in a very price sensitive market.

    My suggestion is ignore dodgy advise on a forum and go see your accountant with real numbers, not just a yeah I do it so it must be a good idea..

    #1213642
    fazzyboo123
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    heftzwecke, post: 255373, member: 88078 wrote:
    If I don’t want to get taxed do I have to register for GST? Which is more hassle and more paperwork or I have to up prices 10%? How do others work around?
    You must register for GST if making more than $75,000 per year. Otherwise you don’t have to.

    If you do, you only charge GST when making sales to people in Australia.

    To individuals within Australia, you can simply raise your prices by 10%.

    Yes there is more work declaring BAS every quarter. I’d recommend getting a great accountant. Not easy to find but worth it when you have one.

    If you’re in Perth I can recommend someone.e

    #1213643
    Precise Tax Solutions
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    fazzyboo123, post: 255405, member: 103821 wrote:
    If you do, you only charge GST when making sales to people in Australia.

    Not quite right, there are some circumstances where you charge GST to non-residents (e.g. if the supply is connected to real property in Australia etc.)

    Cheers

    #1213644
    heftzwecke
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    bb1 I think I ring my accountant. I only learned about it because my shopify page says the following:
    GST will apply to your Shopify invoices as of March 1, 2018….

    #1213645
    Precise Tax Solutions
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    The wording on the Shopify website and the emails that they’re sending regarding GST are confusing everybody!

    Shopify are now charging GST on their monthly invoices to you.

    This is separate from whether you are registered for GST and then required to remit 10% of your sales to the ATO as GST.

    Cheers

    #1213646
    Trent Tran
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    If you estimate your sales were WAY less than $75,000 a year, don’t register and vice versa

    However, in the second, third or four year, you may want to as if not you would always in the mindset of try to be less than $75,000

    We were too in the same position

    http://www.flyingsolo.com.au/forums/index.php?threads/74-000-online-sales-gst-implications.41067/

    Imagine this

    You are at $74,090, $10 extra to meet $75,000 threshold and it would attract $7500 GST from your business by law. You have 2 months left before EOY, what would you do ? Close the store or STOP trading? Of course NOT, you would go all the way to grow

    Having say that, $7,500 is from your income GST , you always would be able to claim GST expense back, so the net will not too bad, especially from an online store, GST from postage within Australia would be significant

    International Sales attract NO GST

    Good luck

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