When Can You Cancel Your GST Registration?
You or your registered BAS or tax agent can cancel your GST registration within 21 days of:
- Closing or selling your business
- Changing your business structure – this includes changing from a partnership to a company, unless the old business runs another business.
You are allowed to cancel your GST registration if your GST turnover is below the threshold for compulsory registration, unless you:
- are a taxi driver (including chauffeur services or ride-sourcing)
- represent an incapacitated entity that is required to be registered or is already registered for GST – for instance, an individual who is a company in liquidation or a bankrupt
- are an Australian resident who acts as an agent for a non-resident that is registered (or needs to be registered) for GST
If you are contacting registered taxation accountants, make sure they have experience to help you cancel your GST registration.
What will be the Effects on other registrations?
If you are permanently closing or pausing your business, you need to still meet your tax and superannuation lodgment, payment and reporting obligations. Cancelling your GST registration may impact some, but not all, of your other registrations. When you cancel your GST registration, your luxury car tax (LCT), fuel tax credit, and wine equalisation tax (WET) registrations will also be cancelled automatically. For information, you can get in touch with the best Accounting Firm Port Melbourne.
You must continue lodging activity statements if you:
- have enrolled in PAYG instalments
- are registered for Pay As You Go (PAYG) withholding
- have fringe benefits tax obligations
Cancellation Date
The date you choose to cancel your GST registration must be the last day you want to be registered. The ATO usually cancel your GST registration from the date you choose. You cannot:
- Cancel your registration retrospectively if you were still operating on a GST-registered basis after choosing the date.
- Continue to work on a GST-registered basis after your cancellation date.
- Cancel if you filed an activity statement for the period consisting the cancellation date.
How Can You Cancel Your GST registration?
You are allowed to cancel your GST registration and any other registration or roles together or separately:
- By using online services for business
- by seeking help from a registered tax or BAS agent
- By completing the Application to cancel registration through Order publications and posting it to the ATO.
Registered tax agents can use Online Services for agents to cancel or update a client’s tax registration.
Simplified GST Registration
If you are a non-resident business using the simplified GST registration system, your authorised contact can email the ATO to cancel your registration.
Cancelling Your Australian Business Number (ABN)
If you cancel your GST registration because you sold your business, changed your business structure, or closed it, you are required to cancel your ABN within 28 days. If your company is registered with the Australian Securities & Investments Commission (ASIC) but you are no longer operating a business, you may keep your ABN, but you need to cancel GST registration. Before cancelling your ABN, make sure to think about your other Australian tax and superannuation responsibilities.
When you cancel your ABN, your LCT, GST, WET, and fuel tax credit registration will also be cancelled. You will not receive future activity statements unless you have PAYG withholding or PAYG instalments.
Completing Your Last GST Activity Statement
You need to complete a business activity statement for the tax period in which your registration cancellation “date of effect” occurs. This statement, you must report all of the following:
- All purchases, sales, and imports made in your final tax period, including:
- the sale of the business
- the sale of any business assets
- Any adjustment for assets you still have after cancellation
- Any other required adjustments
If you use the cash accounting method, you also need to include any purchases and sales from an earlier tax period that you have not yet recorded. You need to submit any outstanding business activity statements and pay any remaining GST amounts. If you still have PAYG withholding, fringe benefits tax responsibilities, or PAYG instalments, you need to continue reporting them using an instalment activity statement.
Despite this, if you need to meet GST record-keeping requirements, you can opt for bookkeeping services Melbourne.
Conclusion
The blog shares requirements and obligations to cancel GST registration. For more information or help to cancel GST registration, you can reach out to Reliable Melbourne Accountants.