How To Cancel GST?
You must know the proper procedures for cancelling your GST (Goods and Services Tax) registration if you are a business owner or individual in Australia who has registered for GST and later needs to do so. This is a detailed instruction on how to deregister from GST.
Step 1: Check Your Eligibility To Cancel GST Registration
Before you begin the cancellation process, you need to determine whether or not you are eligible to cancel your GST registration. You may be eligible to cancel your GST registration.
- If Your annual turnover falls below $75,000.
- Your business has ceased trading.
- You have sold your business to someone who is not registered for GST.
- You are no longer making taxable supplies.
- You are no longer entitled to an ABN (Australian Business Number).
Step 2: Notify the ATO
Once you have determined that you are eligible to cancel your GST registration, you need to notify the Australian Taxation Office (ATO). You can do this online via the ATO Business Portal, by phone, or by mail. Here’s how to do it online:
- Log in to the ATO Business Portal using your myGovID, AUSkey, or Manage ABN Connections.
- Navigate to the ‘Registrations’ tab and select ‘Cancel GST Registration’.
- Follow the prompts and fill out the cancellation form with your business information.
- Submit your cancellation request.
Step 3: Wait for Confirmation
Once you have submitted your cancellation request, the ATO will review it and send you a confirmation email. It may take up to 28 days for your cancellation request to be processed, so be patient.
Step 4: Update Your Business Systems
Once your GST registration has been cancelled, you’ll need to update your business systems to reflect the change. This includes updating your invoices, accounting software, and other systems that may have included your GST registration number.
Tips for Cancelling Your GST Registration:
Don’t cancel your GST registration prematurely: If you cancel your GST registration before you are eligible to do so, you may be subject to penalties and fines. Make sure to double-check that you meet the eligibility criteria before cancelling your GST registration.
Keep accurate records: It’s important to keep accurate records of your GST cancellation, including the date of cancellation and any communication with the ATO.
Seek professional advice: If you are unsure about whether or not you should cancel your GST registration or how to do so, consider seeking advice from a tax professional or accountant.
Final Thoughts
You must follow all of the necessary steps when cancelling your GST registration. If you follow the instructions above, you should be able to cancel your membership without any hassles. Contact the ATO or a tax professional if you have any questions or concerns regarding cancelling your GST registration.
