If you live and work Australia, you may have likely heard of the term GST. GST is an acronym for goods and services tax. Not many people know the full meaning of the acronym except those you have one way or the other work with tax professionals.
GST is usually added for most of the transactions that Australians or foreigners living in the country carry out. However, there are some businesses that are registered for GST; this category of businesses are usually exempted from paying the tax on any services from foreign vendors.
Here, we will explain everything you need to know about GST.
How does GST work?
The Australian government designed the goods and services tax in such a way that it is to be paid by consumers in the end; instead of the brands or businesses involved in the supply chain.
How can GST affect my business?
GST can affect your business in different ways. The ATO requires that every businesses operating in Australia to register and collect GST. This means
- You will be able to claim energy St that you pay on business expenses or supplies.
- You will be required to remit that extra money to the Australian tax office.
- You will also be required to include GST into the prices of your product or services.
How much is GST?
According to the Australian tax office GST is 10% of the sale amount.
Will I be able to Claim GST?
Of course, if you are registered for GST, you will be able to claim GST back from the Australian Tax Office.