Oztaxline Tax Tips & News Australia

1. GST supply
When a registered business makes a taxable supply, it is required to charge and collect GST. This tax will be remitted to the Australian Tax Office (ATO).
Charge GST on supply = collect GST and payable to ATO
Pay GST on purchases = claim back GST from ATO

When supplying invoice/statement to client, on that document must include:
On the Invoice must has stated “Tax Invoice”; registered entity name; date; client name/cash, ABN; price and GST charge.
Exemption:
if the supply charge is less then $75.00, the registered entity still charge GST on top of $75.00 but the entity does not need to supply Tax Invoice if the client does not needed otherwise the entity always has obligation to supply Tax Invoice when client needed regardless of the amount is.
2. Input taxed supplies
Businesses that conduct activities that are input taxed will not charge GST on those supplies and will not be entitled to claim credits for the GST charged on the various inputs to that activity. Such as: financial services and residential rents are those supplies intended to be input-taxed.
NO GST charge on supply = No collection and No remitment to ATO
Pay GST on purchase = No claim on GST from ATO

3. GST-free supplies
Registered entity will not have to charge GST on supply and will be entitled to a refund of all the GST charged in respect of purchases of goods and services that relate to the GST-free supply. Such as exports, government, education and charitable services, etc are ‘GST-free' .
NO GST charge on supply = No collection and No remitment to ATO
Pay GST on purchase = Claim back GST from ATO

# posted by L.Y.B. @ 3:15 PM