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  • When to charge GST (and when not to)

    01 November 2017

    When to charge GST

    If you are registered for GST, most of your sales in Australia will include GST.

    Sales which include GST (taxable sales) are:

    • made for payment (monetary or other)
    • made in the course of operating your business (including any capital assets sold)
    • connected with Australia

    For these taxable sales, you:

    • include GST in the price
    • issue a tax invoice to the buyer
    • pay the GST you've collected when you lodge your activity statement

    When not to charge GST

    You do not include GST in the price of goods and services that are:

    • GST free - such as most basic foods, some education courses and health care products and services.
    • Input taxed - such as lending money and renting out residential premises.

    Claiming GST credits

    You can claim a credit for any GST included in the price of goods and services that you purchase for your business and use to make either taxable or GST-free sales. This is called a GST credit.

    You can't claim a GST credit for the GST included in the price of purchases you use to make your input taxed sales.

    Remember, registered tax agents and BAS agents can help you with tax advice.

    Find out about:

    See also:

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