Importance of Registration

Registration is important for a number of reasons.

The main ones are:

• GST is only payable on a sale or supply if you are registered, except in the case of imports;
• input tax credits can only be claimed if you are registered;
• and GST returns must be lodged if you are registered.

All of these also apply if you are simply required to be registered. As far as registration is concerned, there are:

• those who cannot be registered;
• those who can be registered, but are not required to be;
• those who are required to be registered.

You cannot be registered unless you are carrying on an enterprise, or are intending to do so from a particular date.

You can be registered if you are carrying on an enterprise, or are intending to do so from a particular date.

You are required to be registered if you are carrying on an enterprise, and your annual turnover is $50,000 or more. This is called the registration turnover threshold. For non-profit bodies, the corresponding threshold is generally $100,000. If you are required to register, but fail to do so, you become liable for penalties and even prosecution.

You can only be registered if you are an "entity"