How can GST affect my business?
If you’re a business, you may be required to register for and collect GST. This means:
- you may need to add GST to your prices
- you will need to send that extra money to the ATO
- you can claim back any GST that you’re charged on business supplies and expenses
How much is GST?
10% is the GST rate. It’s charged on most sales in Australia, but not all of them.
Some types of products and services can be sold without adding GST, including:
- staple foods such as fruit and vegetables, meat, most dairy, spices, and sauces
- some education courses and resources
- some medical and healthcare products and services
- financial products and services
How does GST work?
The GST on any item is designed to be paid by the consumer in the end, rather than by the businesses involved in its supply. Take this example:
GST on imports
You will have to pay GST on most imported goods. It’s added to the price you paid for the goods plus shipping costs, and you may have to pay it before customs will release the shipment. You can generally claim the cost back when submitting a GST return.
GST-registered businesses don’t have to pay GST on services or subscriptions from overseas suppliers.
GST on exports
You don’t have to charge GST on exports so long as the goods leave Australia within 60 days of you receiving payment or issuing an invoice, whichever comes first.
Disclaimer: Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the provided content.
Guide to GST & BAS
Making a start with GST and BAS? Don’t worry. It’s a little extra admin, but follow our guide to get on top of it.
- What is GST?
You’ve probably heard about GST – it stands for goods and services tax and is added to most prices in Australia.
- Registering for GST
Find out if your business needs to register for GST. If so, learn how to do it and find out what happens next.
- Calculating GST and issuing tax invoices
If you’re a GST-registered business you must add GST to your prices. You also need to issue GST invoices. Find out how.
- Claiming back GST (and input tax credits)
GST-registered businesses can claim back the GST they pay on business expenses. Let’s learn how to claim it.
- Working out your GST refund or payment
Working out GST is simple maths. Keeping track of all your transactions is the tricky part. Let’s learn the process.
- What is BAS and how to lodge it
GST-registered businesses declare how much they’ve collected and paid by completing a business activity statement (BAS).
- Tools and guides for your business
Now you know the ins and outs of GST and BAS, but it can be tough to manage it all. Xero’s got the resources to help.
Download the guide to GST
Get your small business tax sorted. Fill in your details to get our full GST guide as a PDF.