If you decide to use a SAM, you must tell us which method you are going to use. Your choice to use a SAM has effect from the start of the tax period stated on your notice.
You can only choose one SAM. That is, you cannot choose to apply a SAM in addition to another SAM.
You also need to let us know if you are going to stop using this method. You can only revoke your choice to use a SAM if you have been using it for at least 12 months. Once you stop using it, you cannot choose to use another SAM in the first 12 months of revoking your decision.
Example: Snapshot method
Kim's Snack Bar chooses to use the Snapshot method from 1 January 2018. Kim cannot revoke his choice to use this SAM until 1 January 2019. If Kim chooses to revoke his choice on 1 January 2019, he cannot choose to use another SAM until 1 January 2020.
End of exampleIf you no longer meet a requirement to use a method, you must stop using the SAM from the start of the next tax period after you cease to be eligible.
Example: Business norms method
Siew Foodz reports and pays GST quarterly. They use the Business norms method to work out their GST-free sales and trading stock purchases.
On 3 June 2018, Siew Foodz installs adequate point-of-sale equipment. They no longer meet the requirements to use the Business norms method. They must stop using this SAM on 1 July 2018. They must use the normal GST rules to work out their GST-free sales or trading stock purchases from that date. They need to notify us using the applicable form.
End of exampleIf you meet the turnover threshold requirements when you choose your SAM, you can continue using it for the remaining tax periods in the first 12 months after you make your choice. However, you will not be eligible to use a SAM in tax periods that start after the first 12 months.
Next steps:
To notify us, complete the applicable form:
- Election to use a simplified GST accounting method
- Notice to revoke an election to use a simplified GST accounting method.
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