Small business tax info needed

safreek

*******
Hey guys, started a small business a very short time ago, all the smaller businesses that I provide a service for pay me the agreed rate, no dramas.
A large company that I provide service to have asked me for a tax invoice as opposed to a normal invoice, I was under the impression that if earning under 75k per year this was not needed (gst)
It's a couple K and would be handy through Xmas.
If I am gst exempt how do I provide this.
Last time I had a business running was so long ago that you payed tax and that was it.

Don't worry I will be getting an accountant after New Year, they are all shutting for Xmas ATM.
Please help. Please don't derail this thread, normally that's no drama with me but this is pretty important.
 

nathanm

Eats Squid
scratch my original answer as it related to ABN, not GST.


from that I'd suggest you supply them a tax invoice, but the GST amount will be 0.00.
 

Koper25

Likes Dirt
99% sure hat's correct. You can't issue a tax invoice unless you're registered for GST. However, you can voluntarily register for GST even if you're earning under $75k. (I'm not an accountant, but that's my freelance experience).
 

Mattyp

Cows go boing
if you're not registered for gst you just invoice and clearly state "Price does not include GST" on your invoice. The company then simply do not claim a gst part when they do their quarterly BAS. maybe attach a letter explaining that your are not registered for gst hence no gst amount.

Edit: also state you payment terms on said invoice, otherwise they will pay you when they feel like, some large businesses operate on 90day terms, as a very small business you could comfortably state 7 days or payment due on completion of work.
 
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cokeonspecialtwodollars

Fartes of Portingale
Think of it like this G.S.T. is not something that you charge, it's something that you collect on behalf of the Government, and then the entity that you've collected it from can claim it back through their B.A.S. if they are entitled to.

Since you are exempt from collecting the G.S.T. (small business who's under the threshold) this amount will be zero on the tax invoice you supply.
 

creaky

XMAS Plumper
Do you have an ABN @safreek ? If so, just put it on the invoice and title it 'Tax Invoice' somewhere.

Edit: also state you payment terms on said invoice, otherwise they will pay you when they feel like, some large businesses operate on 90day terms, as a very small business you could comfortably state 7 days or payment due on completion of work.
... and then they'll still pay you 90 days from the end of the month ...
 

link1896

Mr Greenfield
All info Is right from my experience, my sub contractors earning under the threshold for gst collection, invoice me with a document that states abn no, date, bank account info, in big letters “no gst included on this invoice” and a line down the bottom showing gst as “$0.00”.


Now some of us working for asx listed entities will not allow an invoice with no gst. If the subcontractor is lying or goes over the threshold later in the year, the liability is handed to the payee by the Ato when the subcontractor goes missing or cannot pay. ASX top100 are sitting ducks

Conversely if a invoice shows a gst claim, and the invoice issuer isn’t registered for gst, they get to pocket the gst and Ato couldn’t give two fucks, it’s on the payee to check gst registration status.

Both of these cases have happens to us.



Btw, poodle you still got that Bunnings ABN that’s working for you?
 

safreek

*******
Cheers guys, shall
if you're not registered for gst you just invoice and clearly state "Price does not include GST" on your invoice. The company then simply do not claim a gst part when they do their quarterly BAS. maybe attach a letter explaining that your are not registered for gst hence no gst amount.

Edit: also state you payment terms on said invoice, otherwise they will pay you when they feel like, some large businesses operate on 90day terms, as a very small business you could comfortably state 7 days or payment due on completion of work.
I have a 7 day billing cycle, the big Company has a 10 day cycle so I can live with that
 
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