GST is a goods and services tax that is very significant for any type of business, even for lawyers. Also, it‘s important to know when a business should register for GST registration services and that is when the annual turnover is above 75 thousand dollars. But if the turnover is less than the number indicated, when a company has the choice to choose or not to choose to register for it. To get a better understanding of GST, let us explain more information about it.
How does it work?
In fact, the current rate is 10 percent. The system works in this way – when you buy something for your business, for instance, supplies, you are charged with 10 percent of GST that can be claimed back as a credit. On the other hand, business with the less turnover than 75 thousand dollars the GST registration services is optional and thus if such company want to claim the credit, they must register for GST.
How does the report work?
BAS is used to report all the periodic business taxes. Company must report all the charged GST. There is also a specific rule – businesses that has a turnover bigger than 20 million dollars must complete BAS and smaller businesses can choose if they wish to fill it. The BAS have to be lodged by the 28th day of the month.
In order to claim the GST and participate in GST registration services all the customers should be given a tax invoice. Invoices less than one thousand dollars have to have detailed information of the buyer in order to claim the GST.
In order to get more information on GST, one should look for more information on the internet or just hire a finance professional.