Home – New Forums New here? Share your story Registering for GST – what to do with invoices already created?!!

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  • #987215
    samcory
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    Hi, we are about to go over the 75K threshold for this financial year (our second year in business).
    We invoice our customers usually 6 months to 1 year in advance, so they have already paid a small deposit but we do not get FULL payments for all of our services until perhaps the next financial year….

    If we register for GST NOW, and we have already invoiced $48K worth of services for next financial year (but only received $4,450 worth of deposits from those invoices), how can we charge or pay GST on the remaining $39K that will be coming in, when we have not charged GST on the invoice because we invoiced them BEFORE we registered for GST????

    Thanks for your help.

    #1161686
    Data
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    In your case, you can choose to register on a cash basis which means you only pay GST when you have received the payment.

    #1161687
    samcory
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    Data, post: 186817 wrote:
    you only pay GST when you have received the payment.
    Thank you for your reply…I understand I pay tax on money I receive after registering…BUT..I have not charged GST because the invoice was created BEFORE I was registered for GST…do I just have to take the GST out of the money I receive even though it won’t be charged on the invoice that the customer is paying from?
    #1161688
    Data
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    No, the sales before your GST registration are GST free, which you report on G3, please see link below.

    http://www.ato.gov.au/uploadedFiles/Content/ITX/downloads/BUSqc17458n7392.pdf

    For example, in this financial year, you have collected $70,000 from sales before you registered for GST, then you have collected $11,000 after, your total sales will be $81,000. On your BAS return, you report $81,000 on G1, $70,000 on G3 and $1,000 on 1A.

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