Home – New Forums Starting your journey Problems with ABN and Customers

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  • #984374
    rohan kapadia
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    Hi,
    I have just aterted up an Ecommerce store, and my business is selling custom made computers to people.
    I am 16 years old btw.

    I am under the impression that I do not need an ABN and I do not need to register for GST. Is this correct?

    Also, people have been telling me that I have to provide a tax invoice on all sales above $75, and if someone asks for one I have to provide one within 28 working days. Is this true? This worries me, because to do a tax invoice you need to provide an ABN, but I dont think I need to register for an ABN! What would I say if someone requests a tax invoice?

    Thanks,
    Rohan

    #1147325
    Kennethti
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    That information is incorrect. If you are in business you must obtain an ABN.

    You should always provide a tax invoice on request.

    GST is another matter. You only need to register for GST if your annual revenue exceeds $75,000.

    I suggest you speak to an accountant.

    #1147326
    rdenton
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    Hi mate,

    I’m not an accounting expert but this is my understanding:

    • Any business that is selling a service or item for a profit, must be registered with an ABN.
    • You are not required to register for GST unless you earn over a certain amount ($85,000 ?)
    • On the question of invoices – it’s good practise to invoice for each and every sale you make even if it falls under $75.00. I believe a TAX invoice is only required when registered for GST. A regular “invoice” that states “No GST has been charged” is acceptable.

    There’s plenty of info online regarding this, and if you have any questions, give the tax office a call.

    #1147327
    The Copy Chick
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    Not sure if you can still do this, but when I was setting up my business a few years back I was able to arrange a consultation with an ATO representative.

    They came to my home and spent an hour or so going over my questions about my business and left me with a bunch of really helpful information, as well as a direct contact number for the rep I spoke to.

    Might be worth seeing if this is a service the still offer so you can get the information you need straight from the horse’s mouth, so to speak.

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