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Edited version of your written advice
Authorisation Number: 1051478652620
Date of advice: 01 February 2019
Ruling
Question
Are you required to be registered for GST if you exceeded the GST threshold and you are not a non-profit body, pursuant to section 23-5 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act).
Answer
Yes
This ruling applies for the following periods:
From the date you were able to objectively determine that you meet the GST registration requirements pursuant to section 23-5 of the GST Act.
The scheme commences on:
From the date you were able to objectively determine that you meet the GST registration requirements pursuant to section 23-5 of the GST Act.
Relevant facts and circumstances
You are 75 years and have been painting for many years and you have sold a lot of your paintings in one financial year and turned over $110,000.
You were not registered for GST in this financial year (2017/18) and have not previously exceeded the GST registration threshold and will not be exceeding the (GST registration) threshold in the future as most of your paintings are now sold and you do not have the capacity to paint a great deal in the future.
You understand with artists that they are able to use averaging for income tax purposes and you are asking that the ATO demonstrate lenience in regards to the GST registration for the 2018 financial year.
Relevant legislative provisions
A New Tax System (Goods and Services Tax Act) 1999
● Section 9-20
● Paragraph 9-20(1)(a)
● Paragraph 9-20(1)(b)
● Division 23
● Division 188
● Section 188-10
● Section 188-25
● Paragraph 188-25(a)
Reasons for decision
Section 23-5 of the GST Act states who is required to be registered
“You are required to be registered under this Act if:
(a) you are * carrying on an * enterprise ; and
(b) your * GST turnover meets the * registration turnover threshold .
Note:
It is the entity that carries on the enterprise that is required to be registered (and not the enterprise).”
Subsection 188-10 of the GST Act provides;
That you have a GST turnover that meets a particular turnover threshold if:
(a) your current GST turnover is at or above the turnover threshold, and the Commissioner is not satisfied that your projected GST turnover is below the turnover threshold, or
(b) your projected GST turnover is at or above the turnover threshold.
This will mean both your taxable and GST-free supplies will go towards your GST turnover threshold. You've stated that your annual turnover is above the turnover threshold of $75,000 AUD.
Therefore, if you were not already registered you would have been required to be registered for GST.
If you don't register for GST and are required to, you may have to pay GST on sales made since the date you were required to register. This could happen even if you didn't include GST in the price of those sales.
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