Stock control is extremely important. It holds on your cash flow and can be a hidden black-hole if not managed properly.
At the end of 2017, four more of the worlds’ Top retailers are now operating in Australia, TjX Companies Inc., John Lewis and Debenhams which all joined forces in Myer and Harris Scarfe within Australia. This influx of international retailers continues beyond 2017.
Before making a decision in starting a retail business line or experiencing challenges in the midst of your business, spare yourself some time and go through the list of Must-Know points stated below.
Stuck in problems with in government regulations, Duties & Taxes?
GST on low value imported goods reform has been passed & removed by The Federal Parliament from 1st July 2018, however, it will be in effect one year after as in 2019. It is important to make sure all supplies ordered from overseas can be broken down in a budget less than $1,000 at a time. All goods imported overseas in Australian value $1,000 are free of duties, taxes and charges. As on the opposite side, business that meets the $75,000 threshold are recommended to take action in reviewing the business system for respective compliance.
Paying GST & Deferring the payment of GST
The Australian Customs and Border collects GST on 10% of the value of the taxable importation. If you are a qualified and registered for GST, you may be able to defer the payment of GST through Deferred GST Scheme until the first Business Activity Statement lodgement from the first day of the goods importation.
Primary criteria in eligibility
- Registered for GST
- Lodgement of Business Activity Statement (BAS)
- Up-to-date Tax Returns & Payments
- Relevant applications in the past three years
A deferred payment of GST does not form part of the net amount on the subsequent Quarterly Business Activity Statement, but as part of the assessment made on the importation. Business Activity Statement starting on 1st July are treated as assessment when lodgement is filed, additionally, you are able to claim a GST credit for the amount deferred.
Lastly, The Cost of sales / Turnover is the key benchmark for Retailer industry, as this is the most accurate indicator in predicting business turnover. As for a preliminary outlook of your business, most often, your annual turnover should fall within the benchmark range but if it falls outside the benchmark, which may mean that there is room for improvement on your business.
For other sectors within the Retail Industry Food & Beverage, Work, Home & Lifestyle, Wholesales & Logistics, GST-free products can be found in a profoundly long list of items, For more information on main GST-free products and services or concerns that you have in tax related queries, come and talk to us Tax Ideas Accountants & Advisers