• Option 2: to pay or claim quarterly but lodge a report annually

    If Maria selects option 2, she calculates her GST and pays or claims it quarterly but lodges a GST information report at the end of the financial year.

    Her quarterly sales ($160,000), purchases ($121,140) and calculation worksheet are the same as under option 1. Maria copies the following information from her calculation worksheet to her activity statement:

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

    Pay or claim quarterly but lodge a report annually - front and back of activity statement

    Maria would also fill in labels for any other obligations she has. These may include PAYG instalments and PAYG withholding obligations. These amounts would also be recorded in the summary, and would result in a payment or refund.

    If Maria only had GST obligations, she would complete the 'Payment or refund?' section as follows.

    'Payment or refund?' section.

    After filling in her activity statement, Maria lodges it and pays $1,650 by the due date. She does not lodge her calculation worksheet with but keeps it with her records.

    Maria repeats the above steps for each quarter.

    Maria prepares the following summary of her annual purchases and sales from the records she is required to keep under the snapshot method.

    Table: Maria's purchases and sales record for the whole year

     

    Purchases

    Sales

     

    Total

    GST-free

    GST-free %

    Total

    GST-free

    GST-free %

    Quarter 1

    $121,140

    $94,489

    78%

    $160,000

    $115,200

    72%

    Quarter 2

    $132,000

    $102,960

    78%

    $180,000

    $129,600

    72%

    Quarter 3

    $157,000

    $113,040

    72%

    $220,000

    $140,800

    64%

    Quarter 4

    $149,000

    $107,280

    72%

    $210,000

    $134,400

    64%

    Totals

    $559,140

    $417,769

     

    $770,000

    $520,000

     

    Maria worked out the GST-free percentages for her:

    • purchases from her two four-week snapshot periods in June–July (for quarters 1 and 2) and December-January (for quarters 3 and 4)
    • sales from her two two-week snapshot periods in June–July (for quarters 1 and 2) and December–January (for quarters 3 and 4).

    At the end of the financial year, Maria fills in the following labels on her annual GST information report:

    • Other GST-free sales
    • Non-capital purchases.

    Annual GST information report

    Maria can work out these figures by adding these items on each of his quarterly calculation worksheets. In this example, Maria does not have any export sales or capital purchases. If she did, she would also fill in labels G2 and/or G10.

    Maria must lodge her annual GST information report by the due date.

      Last modified: 25 Jun 2014QC 19058