There are a lot of terms used when we start to talk about the GST or a BAS in the BAS Agents’ world. We BAS Agents know what they mean of course but do you as the client or interested reader know what they mean? Here is a list of GST tax terms and their meanings:
Supplies – sales
Acquisitions – purchases
Input Tax Credit – GST credit
GST – Goods and Services Tax
Activity Statement – this can be a business activity statement (BAS), a Pay as you go (PAYG) Instalment (IAS), PAYG withholding and fringe benefit tax instalments (FBI)
WET – Wine Equalisation Tax
LCT – Luxury Car Tax
ABN – Australian Business Number
Consideration – payments for supplies like money or bartering
Entity – an individual (Sole Trader) a body corporate, a partnership, a company, a trust, superannuation fund.
GST Free Sales – sales that do not include GST (does not include input taxed sales)
GST Credit – the GST you claim when purchasing goods or services for your business.
Input – Goods or services you use in your business to make the goods or services you sell.
Input Taxed Sales – Financial sales and supplies of residential premises by way of rent or sale.
Taxable Sale – the sale of goods or services that include GST
Tax Invoice – A tax invoice is a document generally issued by the seller for a taxable supply. It shows information about the seller, the price of the sale and may show the amount of GST paid (from the ATO).
Tax Period – for GST purposes, a tax period can be monthly, quarterly or annual. These periods relate to the frequency of BAS lodgement for an entity.
These are just some of the terms we use here at e-BAS Accounts. If you come across other terms that you don’t understand or would like more information about, please contact us or leave a comment.