GST is an Australian tax which commenced on 1 July 2000. It is basically a value added tax (currently at the rate of 10%) on nearly every type of goods or services with a small number of exceptions. It is accompanied by some stringent rules for registration, recording and documentation of transactions. There is, however, some flexibility allowed in the manner in which prices are recorded on invoices provided certain requirements are complied with.Want to know more? Then follow this link to the GST section of the tax office website.
What is the best method of recording for GST?
There are several solutions. The Tax Office does not require any particular method. It demands only that the figures you report to them are accurate. Choose one of the following:
- Hand-kept records. This method is good provided you can add up figures accurately – and you will have a lot of this to do.
- Computer applications: E-Record is a system designed by the Tax Office for those who keep their records on a cash basis. It is designed to enable any taxpayer to comply with the Tax Office’s comprehensive requirements for record-keeping. It is free and the Tax Office will send a CD to you on request or you can download it by clicking here and selecting the option that applies to you. You can find out more about Accounting Software on the “Software” page. All of these are GST compliant and enable reporting of figures for calculating GST.