Why Voluntarily Register for GST?

Maybe you have a business in around Marrickville or Newtown in Sydney’s Inner West and right now you are earning less than $75,000 per annum.  Did you know that you can choose to register for GST even if you earn less than $75,000 per year or don’t provide rideshare services.

Why would you want to apply for voluntary GST registration? There are a few reasons:

• Business perception. Potential clients may value your business and services more, simply because you are charging GST. In other words, it makes your business look like it’s already performing well, even if you’re still in growth mode.
• Avoid surprising clients later. When you begin paying GST, you’ll need to start charging clients to cover the cost of the tax. Doing so now, even if you’re below the threshold, means you won’t have to surprise clients with a sudden fee hike later on.
• Claim more GST credits. When you make purchases for your business and you’re charged GST, you can often claim GST credits to reimburse yourself. We’ll explain how to do this later in the article, but if that sounds appealing to you, voluntary GST registration may be a wise move.