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ATO Interpretative Decision

ATO ID 2002/5 (Withdrawn)

Goods and Services Tax

GST and requirement to register
FOI status: may be released
  • This ATO ID is a straight application of the law and does not contain an interpretative decision.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the entity, a supplier, required to register for goods and services tax (GST) under section 23-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when its turnover is below the registration turnover threshold?

Decision

No, the entity is not required to register for GST under section 23-5 of the GST Act when its turnover is below the registration turnover threshold.

Facts

The entity is a supplier. The entity is carrying on an enterprise. The entity's current annual turnover and projected annual turnover are below the registration turnover threshold as defined in section 23-15 of the GST Act.

Reasons for Decision

Section 23-5 of the GST Act provides that where an entity is carrying on an enterprise and its turnover meets the registration turnover threshold, it is required to be registered for GST.

In this case, the entity is carrying on an enterprise, however, its turnover is below the registration turnover threshold. Therefore, the entity is not required to be registered for GST under section 23-5 of the GST Act.

[Note: If an entity is carrying on an enterprise or intends to carry on an enterprise it can choose to register for GST under section 23-10 of the GST Act even though its turnover is below the registration turnover threshold.]

Date of decision:  9 November 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 23-5
   section 23-10
   section 23-15

Keywords
Goods & services tax
GST registration
GST turnover threshold
Required to be registered

Business Line:  GST

Date of publication:  9 January 2002

ISSN: 1445-2782

history
  Date: Version:
  9 November 2001 Original statement
You are here 16 September 2005 Archived

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