GST is payable where a taxpayer is in receipt of goods and services under a "taxable supply".
The actual amount of the GST that a consumer pays is 1/11th of the sale price. Businesses that supply goods and services will be required to remit 1/11th of the sale price less 1/11th of the supplies that have incurred with GST to the ATO as GST and is included in their Business Activity Statement.
When a taxpayer makes a taxable supply of numerous items to one client, the supplier must issue a valid "tax invoice" so that the recipient will be able to claim an input tax credit on the supply.
Businesses that supply GST-free goods and services are unable to charge GST to the consumer. However, for input-taxed supplies, businesses that provide GST-free goods and services are entitled to tax credits for the GST they pay on goods and services consumed in providing their supplies to the end consumer.
The following items are GST free:
- Basic food
- Health
- Education
- Child care
- Exports and other consumption outside Australia
- Non-commercial activities of charitable institutions
The Australian Tax Office are increasing their level of GST audits and we would recommend that you contact us if you are requested to provide additional information which can be in the form of a rview or an audit.
For more information please contact us
