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Tax & Compliance
GST (Goods & Services Tax)
Definition
A value-added tax on most goods and services sold for domestic consumption.
Overview
GST is used in countries like Australia, Canada, and India. It works similarly to VAT—collected at each stage of production and claimed back on business purchases.
Example
An Australian consultant charges $1,000 plus 10% GST ($100), totaling $1,100.
Best Practices
Register for GST when required, charge the correct rate, and file BAS returns on time.
Common Mistakes to Avoid
Not registering when required
Incorrect GST treatment
Late BAS lodgment
Frequently Asked Questions
When do I need to register for GST?
In Australia, when turnover exceeds $75,000 annually. Thresholds vary by country.