How to Calculate GST: Small Business Owner’s Guide

Calculating GST (Goods and Services Tax) is crucial for small business owners in Australia. Start by determining whether your business is required to register for GST. If your annual turnover exceeds $75,000, registration is mandatory. Once registered, GST is charged at a rate of 10% on most goods and services sold in Australia. To calculate the GST amount, divide the total sale price by 11 or multiply the GST-exclusive price by 10%. It's also essential to claim GST credits on business purchases, reducing your GST liability. Keep accurate records of your sales and expenses to report correctly in your Business Activity Statement (BAS). Remember to pay any GST collected to the Australian Taxation Office (ATO). Regularly review your GST obligations to avoid penalties and ensure compliance. Staying on top of GST calculations will help your business run smoothly and stay compliant with tax regulations.

For further details: https://www.agibookkeeping.com.au/calculate-gst-small-business-owners-guide/