Complete Guide for Small Business Owners for BAS & GST Obligations
If you own and manage a small business, you probably have heard about BAS and GST a lot. They might sound confusing, but once you understand them, you can run your business seamlessly. Staying compliant with these obligations is necessary as they are part of doing business the right way. Hence, you can seek professional BAS Services for your business to keep it aligned as per ATO requirements. It can save your business from significant penalties and helps in managing cash flow efficiently. Whether you are a sole trader, partnership firm, or trust, knowing your tax obligations saves time and resources.
GST – Goods & Services Tax Obligations
It’s a tax added to most commodities sold across Australia. Hence, if your business is registered for GST, you have to charge this tax to customers. Even when you purchase merchandise for your business, you also have to pay this tax. Every month or quarter, you should tell the ATO about GST paid or collected. Thus, a GST Accountant checks your expenses and sales lodge Business Activity Statement. An accounting expert computes your actual GST refund from the ATO by subtracting the amount paid from the collected tax. Also, it is necessary to lodge BAS without wrong entries and mismatched data since ATO checks your account.
Ensure GST Registration for your Business
For your business, registration for Goods and Services Tax is essential if its turnover is more than 75K AUD. If you own a non-profit organization, the threshold is 150000 AUD. Well, the 75000 threshold is the total sales of your business throughout 12 months, not profit. If you are an Uber driver, you have to register for GST from day 1 of your business commencement. You can make a voluntary registration for GST if your business has a turnover below 75000 AUD. It lets you claim GST refund paid on big purchases from the ATO.
Ensure BAS Preparation & Lodgement of Business
If your business is listed for GST, then BAS Lodgement is your chief accountability. It is a valid form you lodge to the ATO for reporting of GST you have paid and PAYG withholding. Think of it as your business report card, which you need to submit every month or quarter to the ATO. Below are the elements of a BAS you should know.
- GST Paid and Collected
- Tax Withheld from Employees’ Wages
- PAYG Instalments towards your Income Tax
The frequency of lodging your BAS depends on your business, such as monthly, quarterly, or annually. For quarterly lodgement, 28 is the due date after the quarter ends.
Lodge your BAS Accurately with Expert Help
Proper preparation of BAS ensures improved cash flow for your business through the right GST tracking. It prevents unexpected payment obligations for your business as well. Kirpa Tax Accounting Firm is a professional BAS Agent ensure timely and precise lodgement. It helps prevent delays in preparation and lodgement, which leads to costly penalties. Also, you can have accurate record-keeping for your business to meet BAS and GST obligations.
FAQ’s
Is there any difference between BAS and GST?
GST is a 10% tax on most Australian commodities, while BAS is a report to declare GST paid/collected. For BAS Services you can contact Kirpa Tax Accounting Firm.
When should I register for GST and how?
You should consider GST Registration when your business turnover exceeds 75K AUD. If you are in the rideshare taxi business, you must register regardless of turnover.
How often do I lodge a BAS for my business?
Depending on the turnover and size of your business, you should prefer BAS Lodgement. You can choose to lodge the report monthly, quarterly, or annually.
Is it possible to claim GST return on business purchases?
You can claim GST credits on eligible business expenses if registered for it. But you need to have valid tax invoices to submit the claim for refunds.
What happens if I claim the BAS for my business late?
Late lodgement may result in hefty penalties and costs with interest charges. Seek help from a BAS Agent to ensure timely lodgement of the report.
Do I need to prepare a BAS as a sole trader?
Yes, if you are registered for GST, you must lodge a BAS to meet tax obligations. You should lodge the BAS as per the ATO’s regulations.
Can I prepare the BAS on my own for business?
You should make it effort-free, so seeking the help of a GST Accountant is worthwhile. Consult Kirpa Tax and meet your needs as per ATO tax requirements by ATO.