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Edited version of your private ruling
Authorisation Number: 1012455302737
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 20XX?
Answer
Yes. You can change your GST reporting from annual to quarterly effective from 1 July 20XX.
This ruling applies for the following periods:
Effective from 1 July 20XX.
Relevant facts and circumstances
· You are registered for goods and services tax (GST) and carrying on an enterprise of farming activities.
· You wish to become a member of a GST group commencing from 1 July 20XX.
· The members of the GST group are reporting GST on a quarterly basis.
· You advised the Commissioner in the approved form by sending in a letter requesting to change your reporting cycle from annual to quarterly commencing from 1 July 20XX.
· You advised us that you wanted to change your GST reporting method to quarterly because all the members of the GST group are reporting GST on a quarterly basis.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 paragraph 151-25(1)(c)
A New Tax System (Goods and Services Tax) Act 1999 subsection 151-25(5)
Reasons for decision
In accordance with Division 151 of the A New 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(d) (Repealed by No 74 of 2010)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 wish to become a member of a GST group from 1 July 20XX and you requested the Commissioner to revoke your election of reporting GST on an annual basis from 1 July 20XX in an approved form. Therefore, your election for annual reporting will cease under paragraph 151-25(1)(a) of the GST Act, effective from 1 July 20XX.
Your GST reporting method has been changed to quarterly commencing from 1 July 20XX.
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