Question:
I’ve just started my own business as a sole trader and I want to know whether I need to register for the GST or not.

Answer:
There are a number of criteria for deciding on whether to register for the GST. Registering is compulsory if your annual turnover is more than $50,000 annually or is projected to be.

It is also compulsory if you operate a taxi or hire car. If your annual turnover will be less than $50,000, then the choice to register or not is up to you. Most businesses, however, choose to register so that they can claim input tax credits. In the long term, you may be better off registering for the GST.

Filed under: Starting a Business, Accounting & Tax
This page was added on 20 December 2001, last updated on 24 October 2006.