Simplified GST accounting methods for food retailers

Which method can you use?

To help you make a decision, you need to work out your turnover and know whether you are either a:

• reseller - you resell stock without converting it into different products
• converter - you buy GST-free goods and convert them into taxable goods. For example, if you buy potatoes (which are GST-free) and sell them as cooked chips (which are taxable), you are a converter.

If you are both a reseller and a converter (for example, if your business is a snack bar), you are treated as a converter.

Use the following table to work out which methods you may be able to use. Refer to the additional criteria specified under each method.

Your business' profile	Business norms	Stock purchases	Snapshot	Sales percentage	Purchases snapshot
Your turnover is $2 million or less, and you are a reseller.	Yes	Yes	Yes	Yes	Yes
Your turnover is $2 million or less, you are a converter and your conversions make up less than 5% of total sales.	Yes	No	Yes	Yes	Yes
Your turnover is $2 million or less, you are a converter and your conversions make up 5% or more of your total sales.	Yes	No	Yes	No	Yes

Turnover is based on: SAM turnover for the business norms, stock purchases and snapshot method GST turnover for the sales percentage and purchases snapshot method.