• Business norms percentages No. 8 - health food shops

    Am I an eligible health food shop operator?

    You may be eligible to use the business norms percentages to estimate your GST-free sales and purchases if your retail health food shop:

    • has a cash flow which is from sales of food, food supplements, vitamins and other health food products, and
    • does not convert GST-free food into taxable foods, (for example, you only resell items and don't prepare sandwiches or make your own health food bars).

    Your health food shop must also:

    • be registered for GST
    • have a simplified GST accounting methods (SAM) turnover of $2 million or less
    • not have adequate point-of-sale equipment to identify, and record your mix of taxable and GST-free sales, and
    • sell taxable and GST-free food from the same premises.

    If you meet all of the eligibility requirements, you can use the business norms percentages to estimate your GST-free sales and purchases at the end of each tax period, rather than having to record every transaction at the point of sale.

    Health food retailer business norms percentages - resellers only

    • GST-free sales - 35%
    • GST-free purchases - 35%

    If you do not want to use the business norms simplified accounting method, you can use the stock purchases simplified accounting method or the snapshot simplified accounting method.

    If you do not want to use any of the simplified accounting methods you must work out the amount of GST you are liable to pay by accounting for each of your transactions.

    More information

    For more information refer to:

    To obtain this information:

    • visit our website at www.ato.gov.au  
    • phone 13 28 66, or
    • write to us at
      Australian Taxation Office
      PO Box 3524
      ALBURY  NSW  2640.

    If you do not speak English well and want to talk to a tax officer, phone the Translating and Interpreting Service on 13 14 50 for help with your call. If you have a hearing or speech impairment and have access to appropriate TTY or modem equipment, phone 13 36 77. If you do not have access to TTY or modem equipment, phone the Speech to Speech Relay Service on 1300 555 727.

      Last modified: 01 Jul 2010QC 16278