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  • #973141
    pilkster
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    Hi guys

    My partner started business as a sole trader back in October 2010… how long does she have to register retrospectively for GST?

    I’m trying to work out if it is better to do it from the business start or from now.

    Thanks…

    #1059989
    VehicleMods
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    pilkster, post: 73983 wrote:
    Hi guys

    My partner started business as a sole trader back in October 2010… how long does she have to register retrospectively for GST?

    I’m trying to work out if it is better to do it from the business start or from now.

    Thanks…

    I registered for GST about six months after I started my business and phoned the ATO and they backdated registration until the commencement date and gave me an appropriate extension to do my quarterly BAS returns to catch up.

    Even though I had not been charging customers GST, I had been running at a loss so I actually got some cash back.

    At this time of the year I’d discuss it with your accountant as they have access to the ATO’s portal which lets them see your account and can do the BAS lodgements for you.

    When I did my tax, my accountant decided I had overpaid my BAS and got me a refund by lodging revised returns while I was in his office.

    #1059990
    tahera
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    i thought you only register for GST if your turnover pa is 70K and over….if less not required.

    #1059991
    ray_223
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    tahera, post: 74006 wrote:
    i thought you only register for GST if your turnover pa is 70K and over….if less not required.

    Registering for GST is optional if your turnover is expected to be below 75K per year.
    There still maybe some business benefits of registering even if your turnover is under 75K.

    #1059992
    VehicleMods
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    ray_223, post: 74012 wrote:
    Registering for GST is optional if your turnover is expected to be below 75K per year.
    There still maybe some business benefits of registering even if your turnover is under 75K.

    Thats’s exactly why I did it. I was starting to deal B2B so if I wanted to build a dealer network, I basically had to be registered for GST. Even though my sales were under the threshold in year 1, I decided to opt into GST and take the refund by backdating it.

    #1059993
    pilkster
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    Although the business first year turnover will be below 70k she’s bought a lot of stock (GST paid) and also spent on tools, rent, refurbishment which all have GST charged so it may make sense to use the ‘credit’ for the GST on spending.

    #1059994
    LaurenL
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    Better to register GST with ATO from the inception of the business even though you won’t expect the annual turnover of your business will be exceeded to $75K for the first year. By doing this, you will get refund from ATO for the amount of GST paid on your business related purchases.

    Regards
    L

    #1059995
    ray_223
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    LaurenL, post: 74129 wrote:
    Better to register GST with ATO from the inception of the business even though you won’t expect the annual turnover of your business will be exceeded to $75K for the first year. By doing this, you will get refund from ATO for the amount of GST paid on your business related purchases.

    Regards
    L

    I think there are some circumstances where registering for GST isn’t the best option.
    If you are selling mainly to consumers and you percentage of purchases with GST is small – in this case you have an almost 10% advantage over your larger competitors.

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