Understanding GST obligations as a small business owner can be confusing - different rates, registration thresholds, filing frequencies and claiming rules vary by country. The key is getting your bookkeeping right from the start. When every transaction is properly categorised with the correct GST treatment, filing becomes simple and you maximise your GST credit claims while staying compliant.
Check if you need to register for GST based on your country's turnover threshold
Register for GST through your tax authority's online portal
Set up your accounting software with correct GST codes and rates
Issue tax invoices that include your GST registration number
Categorise every transaction with the correct GST treatment
Keep all tax invoices and receipts for at least the required retention period
File your GST returns on time and pay any amount owing
Businesses in Australia operating under the GST + BAS system must meet these compliance requirements set by ATO:
Operating above the registration threshold without being registered
Not issuing proper tax invoices to customers
Claiming GST credits on personal or non-deductible expenses
Not understanding the difference between GST-free, input-taxed and taxable supplies
Mixing personal and business bank accounts, making GST tracking difficult
Waiting until the end of the period to categorise transactions
SortBooks connects to your Xero account and finds transactions sitting in catch-all accounts. AI suggests the right account and tax code, learning from your own past coding. You approve it and SortBooks updates Xero. Reconciled transactions are locked by Xero, so those stay in SortBooks with an Open in Xero link.
AI suggests a category and GST + BAS code for each transaction. You approve it before anything changes in Xero.
Growth and above get a quarterly GST/VAT estimate to check before you lodge with ATO.
Ask about your P&L, cash and who owes you, using live Xero data. Every dollar figure is checked against Xero.
Thresholds vary: Australia $75,000, New Zealand $60,000 NZD, Singapore $1 million SGD, India varies by state (generally Rs 20-40 lakhs), Canada $30,000 CAD. Check with your local tax authority for the current threshold.
In most countries, you can claim GST credits on stock on hand and certain business assets held at the time of registration, provided you have valid tax invoices. The rules vary by jurisdiction.
SortBooks suggests the right account and GST code for transactions sitting in catch-all accounts, and writes them back to Xero once you approve. Growth and above get a quarterly GST estimate to check before you file.
AI suggests, you approve, SortBooks updates Xero. Try it free for 14 days.