GST registration is the process of registering your business with the tax authority to collect and remit Goods and Services Tax. It is mandatory above certain turnover thresholds.
GST registration is required once your business turnover exceeds the registration threshold in your country: Australia $75,000, New Zealand NZD 60,000, Singapore SGD 1 million, Canada CAD 30,000 and India varies by state. Registration can also be voluntary if you are below the threshold but wish to claim input tax credits. Once registered, you must charge GST on your taxable sales, issue tax invoices, claim GST credits on business purchases, lodge GST returns at the prescribed frequency and keep GST records for the required period. The registration process involves applying through your tax authority's online portal, providing your business details, estimated turnover and business activity information. Upon approval, you receive a GST registration number that must appear on all tax invoices. SortBooks helps businesses transition smoothly to GST registration by automatically applying the correct GST codes to all transactions from the registration date.
SortBooks helps with the bookkeeping behind gst registration by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing gst registration by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
GST is a broad-based consumption tax applied to most goods and services. Businesses collect GST on sales and claim credits for GST paid on purchases, remitting the net amount to the tax authority.
A tax invoice is a document that includes GST/VAT information and your registration number. It is required for customers to claim input tax credits on their purchases from you.
An input tax credit is the GST/VAT you paid on business purchases that you can claim back from the tax authority. It offsets the GST/VAT you collected on sales.
An ABN is a unique 11-digit identifier issued by the Australian Business Register to businesses and organisations operating in Australia.
Tax compliance means meeting all your obligations to file tax returns, make payments and maintain records as required by your country's tax laws and tax authority.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.