Does your business buy products and services from overseas suppliers?
If so, you may be charged GST (but not always). Overseas businesses must register for GST in Australia, if they have a turnover of more than $75,000 for sales connected with Australia.
Many large online retailers are registered and charge GST, and you can claim this GST on your BAS.
Many smaller or independent online businesses, are not required to register for GST in Australia and don’t need to include it in their invoices. Business owners can run the risk of incorrectly claiming GST on their Business Activity Statements, on all purchases.
Sometimes the invoices are not clear if GST applies or not. If you’re buying from a new supplier and unsure if GST applies, check their registration at ABN Lookup. If the business has an ABN, the lookup will tell you if it is registered to charge GST. We suggest you check their invoice, to see if GST has been included and if not, this is a GST free purchase on your BAS. If the business doesn’t have an ABN (and isn’t registered for GST), you won’t find them on the ABN Lookup.
If you’re buying business purchases from overseas suppliers, getting your BAS reviewed could be a good idea to check that your GST claims are correct. We’ll also check that your accounting software is set up correctly to make automatic coding of purchases accurate.
Talk to us today to organise a review of your business accounts before you finalise your next BAS or tax return.