Australia (AU) GST Collection

What is GST?

GST is the abbreviation of Goods and Services Tax.  GST is generally due when goods and/or services are sold.  It applies to most goods and services that are bought and sold for use or consumption in Australia.  It is a consumption tax because it is ultimately borne by the final consumer.

Who has to pay GST?

Generally, GST is invoiced by the supplier that is selling goods or services and collected from the customer.  Subsequently, the supplier reports and remits the collected GST to the tax authorities.

If you are a business customer, you should provide your Australian Business Number (“ABN”) to Sakari (see ‘How do I enter my business sold to address and ABN?’ below for details on how to do this). 

If the ABN is valid then no GST will be charged on the supplies made to you by Sakari.  If you do not have an ABN, then GST will be charged on the supplies made to you by Sakari.

If you have provided your ABN, you may be required to self-account for Australian GST under the “reverse charge rule".  This should apply where the customer would not otherwise be entitled to claim a full input tax credit (had GST been charged on the supply).  In these circumstances, the customer reports Australian GST in its GST return and will need to assess its entitlement to claim any portion of the GST as an input tax credit.

What exemptions are available and how does a customer notify Sakari?

Customers who provide a ABN will not be charged GST by Sakari. Due to the structure of the GST system, no other exemptions are available.

How do I enter my business sold to address and ABN?

To update your business address and ABN, please contact the Sakari support team at: help@sakari.io

Are there any GST obligations for me as a customer?

If you have provided a valid ABN no GST will be charged to you.  However, you may have a requirement to report the purchase of services through your GST return via the reverse charge mechanism.

What if I have a ABN and forget to enter it?

Your ABN number can be updated at any time. If entered before the next invoice, Sakari will not charge GST on the next invoice or future invoices issued to you.  If no ABN number is entered at the time the next invoice is issued, GST will be charged until a valid ABN number is entered.

If a valid ABN number is entered and GST has previously been charged on the invoices issued to you, then upon request by you, Sakari may refund for any GST included on invoices issued in the thirty days prior to a valid ABN number being provided.  However, GST will not be refunded on any invoices issued outside of this thirty-day period.

If I have entered my ABN number will Sakari issue me an invoice?

Yes. Sakari will issue an invoice for all supplies made to business customers.