The Australian Goods and Service Tax is levied on physical and digital goods that are traded for consumption within Australia. If you have a commercial presence in Australia, and your business has a gross income of over AUD $75,000 without tax, it is recommended that you register your business for GST.
If you run a business in Australia or provide sales/services in Australia and have a gross income (calculated without tax) of AUD $75,000 or more (AUD $150,000 or more for non-profit organisations) you need to register for GST. If you're starting to get your business off the ground, calculating what you expect to make will give you an idea of whether you need to register for GST. Find out how to estimate your turnover here.
To register for GST you need an Australian Business Number or an ABN. Equipped with an ABN, you can register for GST online, via phone or through a registered tax agent.
GST is set at a flat rate of 10% and is required to be included in the price of your product or service.
Not all sales are taxable in Australia.
For a sale to be taxable it must be:
Made for payment (where the payment is made with money or by other means like an exchange of goods or a provision of a service)
Related to your business
Connected with Australia (in the form of goods, property or digital services)
In essence, the Australian government does not have different tax rates for different types of products, choosing instead to exempt charitable, goodwill and educational organizations from GST; find a full list of GST-free sales here.
A GST invoice sent to a customer must contain the following information:
That the document is intended to be a tax invoice
The seller's identity
The seller's Australian business number (ABN)
The date the invoice was issued
A brief description of the items sold, including the quantity (if applicable) and the price
the GST amount (if any) payable – this can be shown separately or as a statement such as 'Total price includes GST'
Here's how you can configure invoice settings to comply with the requirements mentioned above.
This section will walk you through configuring GST in Chargebee:
Make sure you've added your organization address at Settings > Site info. You cannot configure taxes in Chargebee without completing this step in your initial setup.
Go to Settings > Taxes and click the Enable Tax option.
Once taxes are enabled, you will be redirected to a page containing all the currencies that you have enabled for your site. Step 3 is configuring a price type (the price that you quote for your product/service/addon can be either inclusive of tax, where tax is included in the price, or exclusive of tax, where tax is added to the price) for each of these currencies.
If you are selling to customers in Australia, then AUD will appear on your list of currencies automatically.
GST regulation calls for the price of your product to be inclusive of GST. Choosing a tax inclusive price type for AUD will ensure that GST is always included in the final price shown in the invoices.
If you are selling to Australia in a different currency, check out how to configure price type for a region so your invoices are aligned with regulation here.
If you have chosen for your prices to be tax inclusive, are selling to customers across around the world and would want to charge them the same price for your product regardless of the taxes applicable as per the customer's location, use the Consistent Pricing option.
This option allows you to have a flat-rate charge for your product or service, regardless of the taxes applicable and the customer's country/region. This means that no matter what tax rate is applicable for a sale, the final invoice amount for your product or service will be the same.
Additional customization within consistent pricing:
What happens to your tax-inclusive consistent price when selling to customers residing outside your taxable region or countries where you haven't registered for tax?
Enable this option if you would like your consistent price to apply to them as well. In this case, tax will not be applied and the price will be shown as a whole.
What happens to your tax-inclusive consistent price when selling to customers who are tax exempt?
Do not enable this option if you would like your consistent price to apply to them as well.
Click on Add Region and select Australia from the region list.
You will now be redirected to a GST configuration page.
Enter your tax registration number (ABN number) and your Tax Registration Label (ABN) here.
GST regulation calls for your ABN number to displayed on your invoices. You can enable your tax registration number to be displayed at the Invoice customization page.
Finally, you will need to provide a Tax label and the tax rate that you would like Chargebee to apply to your invoices. As per GST regulation, you should set your tax rate to 10%.