Good and Services Tax (GST)
Good and Services Tax (GST) is the tax on sales of goods and services in Australia and it is paid by consumers. All Australian businesses are required to register for GST if the business turnover is $75,000 per annum or more. Once the business turnover exceeds the threshold, the business must register GST within 21 days. Taxi drivers and ride-sharing drivers such as UBER drivers must register for GST regardless of the turnover.
GST complications can arise in relation to cross-border transactions, the sale of subdivided land, the sale of real properties, supplies made by foreign residents who provide goods or services in Australia, and composite and mixed use supplies.
GST on property transactions
The GST treatment on a property transaction is determined by how the property is classified under GST legislation, whether the supplier and recipient are registered for GST and the intended use of the property. The GST treatment affects the GST payable by the seller and the GST credit entitlements of the purchaser. Furthermore, it also affects stamp duty and cash flow.
There are also special rules of GST on property transactions such as the margin scheme and a going concern rule. The margin scheme reduces GST liability and the going concern rule can exempt GST on a property transaction.
GST errors can be caused by incorrect classification of property, failure to adjust GST for the change in use of property, incorrect claim of input tax credits, and invalid GST clauses in property transactions. The magnitude of GST error on a property transaction can be significant and the overpayment of GST may not be recoverable from the ATO or the purchaser.
At Ezzura Tax Advisory, our tax specialist can provide assessment and GST advice on property transactions, GST on importation, cross-border transactions and other specific transactions.
- Ezzura Tax Advisory can help with:
- Registration of ABN and/or GST
- GST grouping
- Applying for Deferred GST Scheme
- Preparation and lodgement of Activity Statements
- GST review and adjustments
- Tax advice on GST transactions
- Assistance with ATO’s BAS audit or review
GST on importation
GST on imported goods must be paid before they can be released to the importer. However, the GST on importation can only be claimed on the BAS which may not be lodged until months later. Deferred GST Scheme can provide GST cash flow benefits as the GST can be claimed in the BAS before the GST on imported goods is paid.
At Ezzura Tax Advisory, our tax specialist can provide assessment and GST advice on property transactions, GST on importation, cross-border transactions and other specific transactions.
- Ezzura Tax Advisory can help with:
- Registration of ABN and/or GST
- GST grouping
- Applying for Deferred GST Scheme
- Preparation and lodgement of Activity Statements
- GST review and adjustments
- Tax advice on GST transactions
- Assistance with ATO’s BAS audit or review
