Home – New Forums Money matters Under 75K Not Registered for GST Tax Time What effect it has

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  • #988535
    KiwiVic
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    Hi and Thank you in advance; Im not sure this is the right place for this post but here goes

    I have and online business on eBay and sell under 75K per year also import goods under the $1000 cap so as not to inncur GST and sell my products GST free. My question is when I lodge my personal income tax and include my online sales figures and legitimate expenses / claims does the ATO adjust /add GST because Im a reseller / retailer. I assume they dont as I am not registered for GST and my sales are under 75K. I also assume my PAYG income is treated separately and does not form part of the 75K cap. Is this correct? Thanks

    #1167605
    Anonymous
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    Hi KiwiVic,

    Welcome to Flying Solo :)

    You may need to consult an accountant for advice specific to your personal situation, but hopefully you’ll receive some general info pertaining to this soon.

    Thanks for joining the forum,
    Jayne

    #1167606
    BuddyBoy
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    Hi KiwiVic,
    For my sole trader handyman business my accountant explained to me that you need to be registered for GST to claim GST therefore you don’t charge GST either.
    It may be different in your case so don’t hold me to that.

    My accountant also registered me for GST for my other business which is a company so I can claim GST even though I earnt almost nothing as a start up company.
    I was able to claim thousands that I paid in GST due to start up costs and I was refunded the money.

    #1167607
    dangaff
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    Following on from a post or two above.

    As a sole trader, if you are registered for GST, you can charge GST (ie – collect it) and claim GST (ie – GST paid on supplies etc).

    I, as a sole trader don’t meet the $75,000 revenue mark either so therefore I haven’t bothered to go down the GST path (although I did earlier this year and realised it was extra paper work and it wasn’t worth it, as I still wasn’t close enough to the $75,000 mark – BAS was a good learning experience though).

    Being an importer (likewise), you’ll pay more GST than you’ll ever claim back because you can’t claim GST on your the goods you’re buying (because the USA doesn’t charge GST for example), only perhaps the GST on the Customs/Australia side of things (which you said, you’re always under the $1000 import tariff threshold anyway).

    If you’re doing the eBay business separate to your other income (being the main income, ie. day job). Then any profit (because you as the owner are entitled to and taxed on this) that is earned from eBay is then combined with your day job income to get an aggregate amount.

    #1167608
    jedazzy
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    Hello there,

    I have the same situation and concern here as KiwiVic. However, my online store has not been launched therefore I have no sales/ income yet. Just gathering more info :)

    As part of my obligation to my customers, what ‘document’ should I provide them as proof of their payment or purchase? Tax Invoice? But would that include a GST? Or an Invoice without GST mentioned?

    Any clarification would be greatly appreciated :)

    #1167609
    BuddyBoy
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    Hi,
    I got this direct from the ATO website.

    “If you are not registered or required to be registered for GST, you don’t 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 business expense as an income tax deduction, you can claim the entire expense, including GST, on your income tax return.”

    Keep in mind that you don’t need to earn 75k to register for GST but if you do register you have to collect GST and pay it.
    You also have to submit BAS every quarter.
    The plus side is you can claim the GST you paid on goods and services and receive it back when you lodge your BAS.

    If you are unsure just call the ATO.
    They are very helpful and always willing to help.

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