GST Annual Return
If you are liable to file an annual GST return, you need to file and pay any amounts owing by the date mentioned on the front of the return. You need to file and pay any GST owing by that due date. If you have received an annual GST return, this is because:
- You chose to report GST and pay annually, or
- You chose to pay GST by instalments and report GST annually.
You need to complete the return to report GST and calculate the amount you owe the ATO or the amount the ATO owes you. Even if you had no activity, you need to complete an annual GST return. To understand your tax reporting and obligations, you can seek help from a professional tax return accountant, so you can be sure to meet your tax obligations.
Paying quarterly GST instalments and reporting annually
You are liable to pay GST instalment amounts quarterly, as advised by the ATO, and report your GST information annually, if you:
- run a business with a total turnover of less than $10 million
- Do not run a business, but your GST turnover is $2 million or less.
If the ATO works out that you qualify, your activity statement will have your instalment amount pre-printed at option 3. In case you choose this option, it will be pre-selected for you on the activity statement until you qualify to choose an option again.
Paying and reporting GST annually
You need to check your eligibility to report and pay GST annually as at 31 July each year. You are not required to report and pay GST annually if on this date:
- Your estimated GST turnover meets the GST registration turnover threshold, which is
- $75,000 for businesses and other enterprises
- $150,000 for non-profit organisations
- You need to register for GST for some other reason – for instance, because you offer taxi travel.
You need to notify the ATO if you no longer qualify to report and pay GST on an annual basis. The ATO will then change your GST reporting cycle to monthly or quarterly from 1 July and send you the right activity statements to file. For more information on paying and reporting GST annually, you can ask for help from an accounting firm port Melbourne.
Working out your projected GST turnover
To estimate your projected GST turnover as at 31 July, you must add:
- The aggregated GST-exclusive price of the taxable and GST-free sales you expect to make or have made for the month of July.
- The aggregated GST-exclusive price of the taxable and GST-free sales you may expect to make for the next 11 months.
You are not required to include any sales invoicing, the transfer of ownership of a capital asset of yours, or sales made or expected to be made, only when ceasing or substantially and permanently reducing the size or scale of your enterprise.
Cancelling your annual election
If you don’t wish to report and pay GST on an annual basis, you can revoke your annual election and report GST quarterly or monthly. You need to inform the ATO by 28 October to change your reporting requirements for the financial year. Otherwise, you will remain on annual reporting for the rest of the year, and your election will be revoked from 1 July of the following year. If you are not meeting all of your obligations, the ATO may review your eligibility for the annual election.
Records required for GST
You must have records that show the expenses and income used to calculate the amounts you report and claim for GST credits. You can get help from a bookkeeper in Melbourne to help you with record-keeping for GST.
They will keep any other documents that record adjustments, a calculation or decision made for GST purposes. If your records are inaccurate, the ATO may adjust or deny some claims, so it’s crucial to keep the right records. It is suggested that you set aside your GST in a separate ledger account to make your calculations and record-keeping easier.
Conclusion
Now, you completely have an idea of what can affect your eligibility for annual GST reporting. For more information and help, you can reach out to Reliable Melbourne Accountants.