• GST – completing your activity statement using the snapshot method

    These instructions are for small businesses that use the purchases snapshot simplified GST accounting method to calculate the GST they are liable to pay for a tax period.

    You need to read these instructions together with:

    These instructions contain information on:

    They also include a worked example to show you how to fill in the GST section of your activity statement based on the snapshot simplified GST accounting method and where to go for more information.

    GST reporting and payment arrangements

    Your options depend on whether you:

    For businesses that report quarterly

    There are three options available to you if your business reports GST quarterly:

    Option 1: You can continue to report and pay or claim actual GST amounts quarterly.

    Option 2: You can pay or claim actual GST amounts quarterly but lodge a GST information report annually. You must lodge your annual GST information report by the date your income tax return is due (or 28 February the following year, whichever is earlier).

    Option 3: If you meet the eligibility requirements, you can pay GST by instalments and lodge an annual GST return. The eligibility requirements for option 3 are explained in Quarterly GST reporting. You must lodge your annual GST return and make any payment by the date your income tax return is due (or 28 February the following year, whichever is earlier).

    For businesses that report monthly

    If your business reports GST monthly, you continue with your current arrangements - lodging your activity statement by the 21st day of the following month. You report the same information on a monthly basis as businesses that report quarterly under option 1. This means that the labels you fill in on your activity statement are the same as those shown in option 1 of these instructions.

    If you want to either report your GST annually using option 2 or pay GST by instalments under option 3, you must first switch to lodging your activity statement quarterly.

    For businesses that report annually

    If you have elected to report and pay GST annually, you continue with your current arrangements. You report the same information on an annual basis as businesses that pay quarterly and report annually under option 3. This means that the labels you fill in on your activity statement are the same as those shown in option 3 of these instructions. However, you are still only required to pay your GST annually.

    Summary of options for reporting and paying GST

    Table: Options for reporting and paying GST

    Option 1
    Monthly/quarterly

    Option 2
    Quarterly

    Option 3
    Quarterly/annually

    Pay actual GST amounts and report:

    • GST on sales (label 1A)
    • GST on purchases (label 1B)
    • total sales (label G1)
    • GST-free sales (label G3)
    • non-capital purchases (label G11).

    Do not forget to also fill in the following labels if they apply to you:

    • export sales (label G2)
    • capital purchases (label G10).

    If you choose this option, put a cross in the box (x) at option 1 in the GST section of your activity statement.

    Pay actual GST amounts and report:

    • GST on sales (label 1A)
    • GST on purchases (label 1B)
    • total sales (label G1).

    Annually

    Lodge an annual GST information report for:

    • GST-free sales (label G3)
    • non-capital purchases (label G11).

    Do not forget to also fill in the following labels if they apply to you:

    • export sales (label G2)
    • capital purchases (label G10).

    If you choose this option, put a cross in the box (x) at option 2 in the GST section of your activity statement.

    Pay a GST instalment amount that we work out for you (or a varied amount). Transfer the instalment amount to label 1A.

    If you pay a varied instalment amount, you need to report this amount, your estimated net GST for the year and your reason for varying.

    Annually

    Lodge an annual GST return to:

    • report annual amounts for
      • GST on sales (label 1A)
      • GST on purchases (label 1B)
      • total sales (label G1)
      • GST-free sales (label G3)
      • non-capital purchases (label G11)
       
    • account for any difference between total GST instalments and your actual annual GST liability.

    Do not forget to also fill in the following labels if they apply to you:

    • export sales (label G2)
    • capital purchases (label G10).

    If you pay quarterly and choose this option, put a cross in the box (x) at option 3 in the GST section of your activity statement.

      Last modified: 25 Jun 2014QC 19058