Many small food retailers buy and sell products that are taxable as well as products that are GST-free. Others buy taxable and GST-free products and sell only taxable products. Depending on the point-of-sale equipment they use, accurately identifying and recording GST-free sales separately from those that are taxable can be difficult, which makes accounting for GST complicated.
The ATO have introduced the simplified accounting method for GST purposes (SAM) to make it easier to account for GST. These methods will help you work out the amount of GST you are liable to pay to us at the end of each tax period.
There are five methods to choose from, so you need to decide which one is best for your business. You cannot use the averaging involved in these methods to set your prices – set your prices in line with the Australian Competition and Consumer Commission’s (ACCC’s) guidelines.
Please click the link below to find out more information and what system will work best for your business.