What Is GST ?
If you are selling Goods or services in Australia, you have to register yourself for GST (Goods and Servicing Tax) and pay 10% tax on most goods and services .
How Does GST Work ?
All Businesses and Organization registered for GST:
- Charge 10% of GST on Price of service,
- Deduct GST they paid on buying goods and services for business, and
- Pay net amount to Australian Taxation Office.
For Example:
Salman, an Uber Driver charges $50 from rider, he is liable to pay $4.55 of GST to ATO.
If he has spent $10 on expenses(Fuel, Toll etc), he has paid $0.91 of GST.
Net amount of GST he is liable to pay is $4.55 - $0.91 = $3.64 .
For more information about GST, please visit Australian Taxation Office.