When you cancel your GST registration, you need to file a final GST return.
Your final return covers all of your last taxable period, even if you stop trading partway through that period. The date the return is due depends on your filing frequency, just like all your other GST returns.
For example, if you file two-monthly and you cancel your GST on 15 September, your final return needs to cover the period from 1 September to 31 October.
You need to complete the ‘debit adjustments’ or ‘credit adjustment’ sections if:
- you are keeping any assets the business owns for your private use or to use in another business
- the business owes money to creditor
- any debtors owe you money.
Use the current open market value of any assets you are keeping. This means that you need to work out what the asset is worth as if you were selling it today.
If the asset was bought before 1 October 1986, use whichever is lower between the cost price and the open market value.
For assets bought on or after 1 October 1986, work out the GST on the asset using this formula:
(open market value x 3) ÷ 23
You need to return the GST of the value of the asset in your final GST return, regardless of the accounting basis you use.