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Ruling
Subject: Goods and services tax (GST) registration
Question
Can the Tax Office confirm that you do not need to reactivate your GST registration?
Answer:
No, the Tax Office cannot confirm that you do not need to reactivate your GST registration. Since your turnover has met the registration turnover for GST, you are required to be registered for GST. As your turnover met the GST registration turnover as at XX October 20XX, you should register for GST effective from that date.
Relevant facts and circumstances
You operate an enterprise.
Our records show that you have previously been registered for GST and that this was cancelled.
You recently had an extraordinary increase in the turnover of your enterprise, which has resulted in it being over the registration turnover threshold for GST.
You have provided the following information:
· your turnover for the twelve month period to end of the past month was over $75,000
· your turnover reached the amount of $75,000 some months ago
· your projected turnover for the current month and the forthcoming eleven months is $75,000
· your turnover for the current financial year is estimated to be over $75,000; and
· your monthly turnover at present is approximately $10,000.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 23-5
A New Tax System (Goods and Services Tax) Act 1999 section 23-10
A New Tax System (Goods and Services Tax) Act 1999 section 23-15
A New Tax System (Goods and Services Tax) Act 1999 section 188-10
A New Tax System (Goods and Services Tax) Act 1999 section 188-15
A New Tax System (Goods and Services Tax) Act 1999 section 188-20
A New Tax System (Goods and Services Tax) Regulations 1999 Regulation 23-15.01
Reasons for decision
Section 23-5 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that you are required to be registered for GST if:
· you are carrying on an enterprise, and
· your GST turnover meets the registration turnover threshold.
The registration turnover threshold for GST is currently $75,000.
Section 188-10 of the GST Act provides that your GST turnover 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.
Under section 188-15 of the GST Act your current GST turnover in a given month is the sum of all of the taxable supplies you have made or are likely to make during the twelve months ending at the end of that month.
Under section 188-20 of the GST Act your projected turnover in a given month is the sum of all of the taxable supplies you have made or are likely to make during that month and the next eleven months.
On the basis of the information provided your current turnover meets the registration turnover threshold for GST. In addition, on the information provided your projected turnover will meet the registration turnover threshold. As a consequence, you are required to be registered for GST.
Further, as your turnover met the registration turnover threshold on a certain date, you were required to be registered effective from that date.
You may obtain your GST registration either:
· by telephone on 13 28 66, or
· by paper using the form Add a new business account (NAT 2954), which is available on our website www.ato.gov.au .
The publications Change of registration details (NAT 2943) and Add a new business account (NAT 2954) are also available on our website to assist you with your re-registration for GST.
Further information:
Further information and a wide number of general topics are contained in our publication GST for small business (NAT 3014-09.2010). This publication is also available from our website.