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Choosing your GST accounting basis

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Your accounting basis is how you report on your GST. It's what you show in your GST return about the GST you've collected and paid.

You choose your accounting basis when you register for GST.

Accounting basis

Who's eligible

What you need to do

Payments

If your total sales are:

  • $2 million or less in the last 12 months
  • likely to be $2 million or less in any 12-month period beginning on the first day of a month.

Show this in your GST return:

  • The amount you've been paid by your customers in the period covered by your GST return.
  • The amount you've paid to your suppliers in the period covered by your GST return.

Invoice

Anyone

Show this in your GST return:

  • The amount on the invoices you've sent to your customers in the period covered by your GST return, even if you haven't been paid yet. If a customer pays a deposit before you've invoiced them you still include the sale in your return.
  • The amount on the invoices you've received from your suppliers in the period covered by your return, even if you haven't paid them yet. If you've paid a deposit before you've received an invoice you must wait till you've received the invoice before you can claim the GST back.

Hybrid

Anyone. It's not used often as it's complicated.

Use the invoice basis for your sales.

Use the payments basis for your expenses.