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  • #970961
    Mic L
    Member
    • Total posts: 1

    Hi

    I am a sole trader and no GST register
    I know I can not issue a GST invoice and also can not claim the GST back for my purchase

    If I buy something which including GST, can the GST be treat as a deductible expense in my P/L ? and the net income can be smaller after GST deduction ?

    #1047024
    Alan Maddick
    Member
    • Total posts: 410

    Yes as you are not registered for GST the whole gross expense including GST is an expense.

    Ie if you spend $10,000 + $1000 GST on expenses your expense is $11,000.

    I hope that makes sense

    #1047025
    beancounter
    Member
    • Total posts: 159

    Quite simply, anyone who is registered for GST is simply a tax collector working for the ATO!!

    At the end of each month, quarter or year, the business owner has to work out how much GST that was charged out, and how much GST was collected – and the difference is then given to the ATO, or is claimed back from the ATO

    If you’re not registered for GST then you cannot collect it, nor can you claim it back (It was never YOURS anyway)

    #1047026
    GetYerOwnBin
    Member
    • Total posts: 58

    If you are not registered or required to be registered for GST, you do not include GST in the price of your sales and you can’t claim credits for any GST included in the price of your purchases, even if they are for your business.

    But if you can claim the expense as a personal income tax deduction, you can claim the entire expense, including GST, on your income tax return.

    #1047027
    GetYerOwnBin
    Member
    • Total posts: 58

    Oh god…

    Honestly, people, it’s not hard. Contact the ATO and they’ll tell it to you straight.

    #1047028
    beancounter
    Member
    • Total posts: 159

    Why are people so afraid to seek professional advice from acountants and lawyers when setting up their businesses

    Don’t they realise that the small investment of structuring their business activities correctly at the outset can save them so much money / stress down the track

    Speak to anyone at the ATO and you’ll find it’s hard to get a straight answer from them

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