Could anyone here explain to me how GST refund works, please?
Is it simply deducted from total income (just like usual tas deduction) or Taxation Office actually returns the GST money I paid out (then I pay income for this amount). How to do the math? (sorry I'm not good at it)
Recently I imported some tools for my business. They were tarriff free but I still had to pay GST. I was told I could get GST refund but I'm not sure how that works.
(Sorry I don't know much of GST and tax calculation)
from what i know the BAS is done every quater (3 months) you calculate your gross earnings for that 3 month peroid of which you should of included gst in your price that you invoice your clients for your sevice or product.
Then caluclate your expenditures capital and not capital. Example of capital purchase, if you brought a shop for example for 100k there would be 10k gst in the price which you can claim back the whole 10k. and non capital might included tools etc or stock which you can claim back also ( any business purchasers that included gst in the price you can claim back.). And then you included your expected tax you will have to pay.
so for example your turn over for the 3 months was 9k this includes 10% gst included in invoice amounts, you did not earn this so you have to pay it back to the goverment the amount of gst you charged so you owe $900 and you also included normal tax of maybe $1100 for the quater so add them together and you owe 2k. This is then offset against purchasers your made. so in the example of the shop you can cailm back the 10k and any other "Business" purchasers , so in this example 10k - 2k the goverment would owe you 8k. This is how i think it works anyway or close to it.
This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.