RECORD KEEPING TIPS - GST RECORDS
Continuing on from prior weeks, we are providing some record keeping tips that could save you a lot of time, stress and minimise your tax bill.
1. Set aside some time each day/week to record your expenses - Click here to view last weeks tax tip
2. Keep a photocopy of your receipts or store them electronically - Click here to view last weeks tax tip
3. Making sure your receipts have all of the information the tax office requires - Click here to view last weeks tip
4. GST Records you must keep
Family Day Care and Child Care Services are GST Free. This means that you do not charge GST to Parents for the care you provide. However if you are registered for GST, you are entitled to claim back the GST you pay for business purchases.
In order to claim back the GST there are a few things to remember:
1. You must have a tax invoice to claim a credit for the GST included in the price of any goods and services you
buy for your business that cost more than $82.50, including GST.
2. The tax invoice must contain certain information. The required information varies according to whether the tax
invoice is for an amount less than $1,000, or for $1,000 or more.
For purchases less than $1,000 it must contain enough information to be able to clearly identify the following:
– the supplier’s identity and ABN
– a brief description of what is sold, including the quantity (if applicable) and the price of what is sold
– the extent to which each sale is a taxable sale – this can be shown separately or, if the GST to be paid is
exactly one-eleventh of the total price, as a statement such as ‘total price includes GST’
– the date the document is issued
– the amount of GST (if any) payable for each sale
– if the document was issued by the recipient and GST is payable for any sale - that the GST is payable by the
supplier
– that the document was intended to be a tax invoice or an Recipient Created Tax Invoice (RCTI) if it was
issued by the recipient.
Where the total price of the sale is at least $1,000 or more, the invoice must contain the above information plus, the recipient's / purchaser's ABN.
If you do not have a tax invoice which contains the above information then the tax office may not allow you to claim the GST. A supplier is required to issue you with a tax invoice within 28 days, however if you are unable to obtain it, you will need to contact the tax office and make a special request for them to allow you to claim the credit by providing additional information.
You are required to keep all of your tax invoices for 5 years. Similar to your tax records, you should make sure your invoices are organised and stored away securely so that you can substantiate your claims in the case of an audit.
Continuing on from prior weeks, we are providing some record keeping tips that could save you a lot of time, stress and minimise your tax bill.
1. Set aside some time each day/week to record your expenses - Click here to view last weeks tax tip
2. Keep a photocopy of your receipts or store them electronically - Click here to view last weeks tax tip
3. Making sure your receipts have all of the information the tax office requires - Click here to view last weeks tip
4. GST Records you must keep
Family Day Care and Child Care Services are GST Free. This means that you do not charge GST to Parents for the care you provide. However if you are registered for GST, you are entitled to claim back the GST you pay for business purchases.
In order to claim back the GST there are a few things to remember:
1. You must have a tax invoice to claim a credit for the GST included in the price of any goods and services you
buy for your business that cost more than $82.50, including GST.
2. The tax invoice must contain certain information. The required information varies according to whether the tax
invoice is for an amount less than $1,000, or for $1,000 or more.
For purchases less than $1,000 it must contain enough information to be able to clearly identify the following:
– the supplier’s identity and ABN
– a brief description of what is sold, including the quantity (if applicable) and the price of what is sold
– the extent to which each sale is a taxable sale – this can be shown separately or, if the GST to be paid is
exactly one-eleventh of the total price, as a statement such as ‘total price includes GST’
– the date the document is issued
– the amount of GST (if any) payable for each sale
– if the document was issued by the recipient and GST is payable for any sale - that the GST is payable by the
supplier
– that the document was intended to be a tax invoice or an Recipient Created Tax Invoice (RCTI) if it was
issued by the recipient.
Where the total price of the sale is at least $1,000 or more, the invoice must contain the above information plus, the recipient's / purchaser's ABN.
If you do not have a tax invoice which contains the above information then the tax office may not allow you to claim the GST. A supplier is required to issue you with a tax invoice within 28 days, however if you are unable to obtain it, you will need to contact the tax office and make a special request for them to allow you to claim the credit by providing additional information.
You are required to keep all of your tax invoices for 5 years. Similar to your tax records, you should make sure your invoices are organised and stored away securely so that you can substantiate your claims in the case of an audit.