well explained, but the part which i didnt understand still is unclear, i didnt understand how gst work from one business to another, let me explain myslef. Lets suppose a person finds some wood and sells it to the a guy who makes doors, now the guy who makes doors sells it to the furniture shop and the furniture taxes the consumer, however in terms of business gst is calculated in between all 3 purchases (all levels of the supply chain), now this is where i got stuck, if you could explain it would be very much appreciateed.
When the guy who makes the doors buys the wood some of the money he pays to the wood collector will be GST (let's say $40). The wood collector then pays the ATO $40 next time they lodge a BAS. When the door maker sells a door to the furniture shop and he'll get a credit for the $40 on his BAS. So, if he charges say $100 of GST to the furniture shop and gets a credit for $40, he'll only pay $60 GST on his next BAS. So you can see that the latest invoice had $100 GST on it, and if you add up what's been paid to the ATO ($40 + $60) it's exactly $100. This keeps happening all the way up the chain until the final purchase is made by a consumer. The full washup should be that if the consumer is charged say $250 of GST on their invoice, all up the ATO will collect that much in total from all the businesses combined along the chain. Make sense?
hello, my business had to pay a "subscription fee with 10% GST included" to Shopify earlier (when it was NOT GST-registered). This transaction was reconciled as "BAS excluded" in Xero. After registering for GST, the company ABN is provided to Shopify. Since then, the Shopify bill no longer charges the 10% GST. So now, the subscription fee paid to Shopify should be reconciled as "GST Free Expenses"? thanks in advance :)
well explained, but the part which i didnt understand still is unclear, i didnt understand how gst work from one business to another, let me explain myslef. Lets suppose a person finds some wood and sells it to the a guy who makes doors, now the guy who makes doors sells it to the furniture shop and the furniture taxes the consumer, however in terms of business gst is calculated in between all 3 purchases (all levels of the supply chain), now this is where i got stuck, if you could explain it would be very much appreciateed.
When the guy who makes the doors buys the wood some of the money he pays to the wood collector will be GST (let's say $40). The wood collector then pays the ATO $40 next time they lodge a BAS. When the door maker sells a door to the furniture shop and he'll get a credit for the $40 on his BAS. So, if he charges say $100 of GST to the furniture shop and gets a credit for $40, he'll only pay $60 GST on his next BAS. So you can see that the latest invoice had $100 GST on it, and if you add up what's been paid to the ATO ($40 + $60) it's exactly $100. This keeps happening all the way up the chain until the final purchase is made by a consumer. The full washup should be that if the consumer is charged say $250 of GST on their invoice, all up the ATO will collect that much in total from all the businesses combined along the chain. Make sense?
You are making great videos!! Thank you so much.
Awesome thanks!
Hi bro I have plans to drive uber I have ABN number I have to register to for gst ??
Yep
hello, my business had to pay a "subscription fee with 10% GST included" to Shopify earlier (when it was NOT GST-registered). This transaction was reconciled as "BAS excluded" in Xero. After registering for GST, the company ABN is provided to Shopify. Since then, the Shopify bill no longer charges the 10% GST. So now, the subscription fee paid to Shopify should be reconciled as "GST Free Expenses"? thanks in advance :)
Yes it's GST Free
@@mark-cunningham thanks