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Irina Hollander & Associates Pty Ltd Chartered Accounts

Should my business be registered for GST voluntarily?

The answer to this question is more relevant to the owner of a business with the annual turnover below $75,000. Once the turnover is over $75,000 a year, GST registration is no longer a matter of choice, it is compulsory.

If your business is new or small and though voluntary registration is a possibility, one should ask themselves whether there is any benefit in being registered for GST voluntarily?

On too many occasions, the GST registration is entered into automatically as part of obtaining an ABN for the new business without giving much thought as to:

1) how having GST on top of your fees or price of the goods you are selling is going to impact the competitiveness of your new venture on the market?

2) who are your customers? Are they too GST- registered businesses that are able to claim the GST from the ATO? Or are they individuals and SMSFs not registered for GST, to whom the GST on top of your invoice is an additional cost?

3) is the quarterly GST refund greater than the cost of a professionally prepared and lodged BAS?

4) is there a good financial reason behind the voluntary registration for GST? Are you registering because you are about to buy a business vehicle from a car dealership, import goods from overseas or to outfit your new business premises?

For more information please contact Irina Hollander CA.

Disclaimer The information provided above is of a general nature only and should not be relied upon as a substitute for specific professional advice.