Your client must have a taxable activity to be registered for GST.
If your client is filing regular GST refund returns with expenses consistently more than their income, it may suggest they are not carrying out a taxable activity, or have errors in their GST returns.
GST refund returns for customers registered 12 to 24 months
Your client may receive a letter if they have filed regular GST refund returns from registration. Please review the refund returns filed and, if required, take any necessary action.
GST refund returns in the last 36 months
Your client may receive a letter if they have filed regular GST refund returns in the last 36 months. We need a response to this letter. The response should include 1 or more of the following:
- A description of the taxable activity or activities undertaken and an explanation for the regular GST refunds.
- A voluntary disclosure to correct any errors in the GST returns.
- Cancellation of the GST registration if they are no longer carrying on a taxable activity. The final GST return should be filed with the required adjustments.
If you have a client with the GST mail redirect, the letter will be sent to you.