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Cancellation of Registration

 

If you stop carrying on an enterprise, you are no longer entitled to be registered, and must apply for cancellation of your registration within 21 days. Remember, you are treated as carrying on a business or enterprise as long as you are doing anything in the course of terminating it.

Even though you are still carrying on an enterprise, you may apply for cancellation if registration becomes optional, for example where the GST turnover drops below $75,000.

In either case, the Tax Office is obliged to comply with the application for cancellation, provided that you have been registered for at least 12 months, and provided that the Tax Office is satisfied that you are not required to be registered.

The effects of cancellation of registration are:

  • The current tax period will cease at the end of the day on which the cancellation takes effect. This will be the business’ final tax period
  • Future supplies you make are not subject to GST
  • You cannot claim input tax credits on future acquisitions that you make
  • You will not have to lodge normal GST returns for periods after your final tax period
  • If you are on a cash basis, any GST, input tax credits or adjustments that have not been attributed to any previous tax period will be attributed to the final tax period; and
  • The business may be liable for an upwards adjustment to its net GST in its final tax period if it retains assets for which input tax credits have been claimed