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Ruling
Subject: GST and change of reporting cycle from annual to quarterly
Question
Can you change your Goods and Services Tax (GST) reporting from annual to quarterly effective from 1 July 2012?
Answer
Yes, you can change your GST reporting from annual to quarterly effective from 1 July 2012 as you were required to be registered for GST on 31 July 2012.
This ruling applies for the following periods:
From 1 July 2012
The scheme commences on:
Not applicable
Relevant facts and circumstances
· You are registered for goods and services tax (GST) and reporting GST on an annual basis.
· You carry on an enterprise of importing clothes.
· You advised us that your GST annual turnover for the financial year ending 30 June 2012 was in excess of $75,000.
· You also advised us that your GST annual turnover would be in excess of $75,000 in the future years as you have entered into new contracts.
· You notified the Commissioner in the approved form by sending in a letter requesting to change your reporting cycle from annual to quarterly.
· You are not part of a GST group.
Relevant legislative provisions
· A New Tax System (Goods and Services Tax) Act 1999 Subsection 151-25(5) and
· A New Tax System (Goods and Services Tax) Act 1999 Paragraph 151-25(1)(c).
Reasons for decision
In accordance with Division 151 of the A Tax System (Goods and Services Tax) Act 1999 (GST Act), you made an election to pay GST on an annual basis.
The duration of an annual tax period election is addressed in section 151-25 of the GST Act. Under subsection 151-25(1) of the GST Act, your annual election ceases to have effect if;
(a) you revoke it by notifying the Commissioner in the approved form; or
(b) the Commissioner disallows it under subsection (3); or
(c) on 31 July in a financial year, you are required to be registered; or
(d) (Repealed by No 74 of 2010)
Your election also ceases to have effect at the end of your tax period under subsection 27-39(1), at the end of your concluding tax period under section 27-40, or at the end of a tax period applying to you to which subsection 151-55(1) applies.
In your case, you were required to be registered for GST at 31 July 2012 as you have confirmed to us that your GST annual turnover has exceeded the GST registration threshold. Consequently, your election for annual reporting will cease under paragraph 151-25(1)(c) of the GST Act as you were required to be registered for GST at 31 July 2012 although you are registered for GST.
Subsection 151-25(5) of the GST Act provides that if paragraph 151-25(1)(c) applies, then your GST annual election is taken to have ceased from the commencement of the financial year referred to in that paragraph.
Therefore, you will cease your GST annual election and report your GST on a quarterly basis from 1 July 2012.
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