• How to complete the GST section of your activity statement

    Attention

    To use the snapshot method, you must have SAM-turnover of $2 million or less.

    End of attention

    If you use this method, you must take a snapshot of your trading pattern. That is, you must work out the GST-free percentage of your total sales and the GST-free percentage of your total purchases over two short periods each year.

    You apply these percentages to your total sales and purchases for each tax period to estimate your GST-free sales and purchases. The second snapshot you conduct is to allow for seasonal fluctuations.

    If you think that taking a snapshot like this is suitable for your sales but not for your purchases, you can work out your actual GST-free purchases every tax period from your tax invoices.

    You fill in the same labels on your activity statement, annual GST information report or annual GST return whether you:

    • do a snapshot of your sales and purchases
    • do a snapshot of your sales and examine your purchases every tax period
    • use the 5% GST-free stock estimation basis.

    Using option 1: to calculate GST and report quarterly (or monthly)

    If you use option 1 to calculate GST and report quarterly (or monthly), remember to include:

    • the sale of other non-stock items at G1
    • any export sales at label G2
    • the price of capital items you purchase for your business at label G10
    • the purchase of other non-stock items at label G11.

    See Worked example.

    Using option 2: to pay or claim quarterly but lodge a report annually

    Attention

    If you report and pay GST annually, you report GST using the same method as businesses that report GST annually and pay GST in quarterly instalments.

    End of attention

    See Worked example.

    Using option 3: to pay a GST instalment amount

    If you use using option 3: to pay a GST instalment amount, remember to include:

    • the sale of other non-stock items at label G1
    • any export sales at label G2
    • the price of capital items you purchase for your business at label G10
    • the purchase of other non-stock items at label G11.
    • See Worked example.
      Last modified: 25 Jun 2014QC 19058