GST Payment Requirements and How to Register for a GST Account
If you are running a business, the Goods and Services Tax (GST Login) is something you need to become acquainted with. This tax applies to all businesses operating in Australia, regardless of their size or industry.
If you sell goods and services or operate as a non-profit organization, you will need to register for the GST and account for it in your company’s finances. To do this, you will need to understand how the GST works as well as when and how much GST you need to collect from your customers and then pay to the government.
In this article, we explain everything you need to know about registering for a GST account and meeting your tax obligations. Read on to discover more.
The basics of the Goods and Services Tax (GST)
The Goods and Services Tax (GST) is a value-added tax (VAT) system that Australia adopted in 2000. It is a tax every business that sells goods or provides services pays based on their annual turnover. The goal of the GST system is to increase the tax base and make the tax system more efficient. Before the GST system was put into place, businesses were taxed on their profits. You can do the GST Portal Login Online in very less amount of time.
The GST Verification system removed the need for businesses to keep track of and report purchases of goods and services, which made the system more straightforward and simplified the filing process for businesses. Unlike profit-based taxation, the GST system taxes businesses based on the business’s sales revenue. GST applies to all businesses regardless of the size.
Businesses pay a certain percentage of their sales revenue as GST to the government. By making the GST Number Search mandatory for all businesses, the government has simplified the filing process for businesses.
When is GST Due in simple terms?
GST payable by businesses is calculated based on the value of sales less GST-inclusive purchases. The amount of GST due is calculated as each sale is made and then again at the end of the financial year when business owners prepare their income tax returns.
GST is due on the last day of the month following the end of the financial year. More specifically, GST is due on the last day of the month that falls within the following period: For example, the period between 1 July 2019 and 30 June 2020 is 20 months.
GST is due on 31 January 2020. When calculating GST payable, keep in mind that GST on supplies of goods is payable at the rate of 10% for most types of goods. The GST on supplies of most types of services is payable at the rate of 10% from 1 July 2018.