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Tuesday, 31 July 2012

Backdating a GST registration

Can you back date a GST registration?
Should you backdate a GST registration?
When MUST you backdate a registration?


A business making taxable supplies must register for GST when they pass the $75,000 turnover threshold.

This can and does get missed from time to time.

The system does allow a registration to be backdated for up to 4 years. (It can go further if fraud is proved).

If your client has crossed the threshold and should register then you must. If they passed this threshold a year ago you should backdate the registration and change the accounting to include the GST impact.

Backdated registrations mean 1/11th of the taxable supplies is treated as GST collected so you have a payment to make.

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