If your business is registered for GST, you must send tax invoices to your clients, gather GST and send it to the ATO with your BAS. There are a few ways you can easily manage:
- You can get help from a tax accountant who is well-aware of using business accounting software to generate tax invoices and reports of your GST liabilities and credits. By accessing accounting services in Melbourne for your business, you can be sure to report and pay GST on time to avoid penalties.
- Put the collected GST in a separate bank account.
- Use the cash accounting method to match your GST liabilities with your business cash flow.
When to Pay GST?
The GST reporting cycle may be monthly, quarterly, or annually, based on the turnover of your GST and other requirements.
Monthly GST reporting
If your company’s GST turnover is $20 million or above, you are liable to report and lodge your GST monthly and file your BAS. The ATO also needs some other businesses to report GST monthly. Other companies can report GST monthly if their GST turnover is less than $20 million. If you report and pay GST on a monthly basis, you can use one of the following reporting methods:
- Full reporting method: If your GST turnover is $10 million or above, you are liable to use the full reporting method. Under this method, you calculate, report, and pay your GST every month. You need to provide detailed information on your BAS using this method.
- Simpler BAS reporting method: If your business’s GST turnover is less than $10 million. Under this method, you don’t need to report detailed information on a monthly activity statement. However, you are still required to calculate and pay your GST every month.
Quarterly GST reporting:
If your GST turnover is less than $20 million, and the ATO hasn’t told you to report GST every month, you can report and pay GST quarterly.
- Full reporting method: If your GST turnover is $10 million or above, you must use the full reporting method. Under this method, you calculate, report, and pay your GST on a quarterly basis. If you don’t know how to calculate GST, you can ask tax accountants to do it for you. You can engage a tax accountant near you by searching online for ‘best tax accountant near me’, so you can visit them anytime to discuss tax matters. You need to provide information on your BAS.
- Simpler BAS reporting method: If your GST turnover is less than $10 million, you must use the Simpler BAS reporting method unless you are on GST instalments. Under this method, you don’t need to report detailed information on your quarterly BAS, but you must still calculate and pay your GST amounts quarterly.
Annual GST Return
If you are voluntarily registered for GST, you can choose to report and pay annual GST. That is, you are registered for GST and your GST turnover is under $75,000. If you qualify and have chosen to report and pay GST annually, you are not liable to report or pay any GST during the year. You are required to report and pay any amount due at the end of the financial year. When reporting and paying GST, whether it’s monthly, quarterly, or annually, you must have accurate records. For better record-keeping, you can get help from a bookkeeper for reliable bookkeeping in Melbourne for your business based in Melbourne.
- Simpler BAS reporting method: If you report and pay GST on an annual basis, you can use the simpler BAS reporting method. Under this reporting method, you are not required to report detailed information on your annual GST return, and you calculate and pay the GST amount annually.
Conclusion
As a business owner, you must be aware of when you are required to report and pay GST. However, reporting and paying GST might be overwhelming for many business owners due to a lack of time and expertise. Therefore, it is advisable to get in touch with reliable Melbourne accountants to report and pay GST on time to avoid penalties from the ATO.