Information sheets for download:
ATO Factsheet – GST and sales to Norfolk Island
Norfolk Island GST Office ~ Frequently asked questions:
Q. Do I have to register for GST?
A. Yes, all people / businesses who are in the business of selling a good or service must register with the GST Office if their gross income is over $3,000.00 in any rolling 12 month period. This includes people who sell items at the local markets; providers to tour operators i.e. progressive dinners; people who are paid for doing book work / record keeping for other NBN holders; people who have items for sale on a commission basis with shops / galleries i.e. carvings, paintings, photographs etc; cleaners who are not bona fide employees i.e. their workers compensation is not covered by their employer; sellers of animals to butchers etc; sellers of fruit and / or vegetables etc.
Q. What is an NBN?
A. When you register with the GST Office you are given a unique registration number known as a Norfolk Business Number (NBN). This number must be included on your monthly remittance forms, Tax Invoices, Tax Receipts, Statement of accounts, Orders, Rental / Lease Agreements, Contracts, Letterheads, Emails, Facsimiles.
Q. When do I need to lodge my Remittance Form and pay my GST?
All GST Remittance Forms and payment must be received no later than the 28th day of each month (or where that day is a Saturday, Sunday or public holiday, the next working day) for the preceding month i.e. the GST Remittance Form and payment for July 2009 must be received no later than the 28th August 2009. Penalties of $625 will be issued for non-lodgement and payment of GST forms and GST. If GST and the penalty are not received by the date stipulated by the GST Office then a court summons will be issued.
Q. Can I charge GST on the freight or postal component of an item?
You cannot charge GST on freight or postal charges, as they are GST exempt. You are unable to claim any component of freight or postal charges as an Input Tax Credit.
Q. Do I need to state the GST component separately?
A. The GST component should be stated separately on all invoices, receipts and statements of account.
Q. What if I receive no revenue in a particular month?
A. If you are registered you are still required to lodge a GST Remittance Form stating that Nil revenue was received.
Q. Do I need to keep any records?
You are required to keep and maintain all records of the sale, disposal and purchase of all goods and services, which must be available for inspection by an auditor or the Chief Revenue Officer or his or her representative at all normal business hours on not less than 1 hours notice. They must be legible and in the English language. They must state truthfully and accurately the actual price paid and received in respect of all goods and services; all GST free goods and services; and all input tax credits claimed.
Any person in breach of keeping these records will be subject to penalties.
Q. If Barter Cards are used do I need to include the points on my GST Remittance Form?
A. All points earned must be included in your gross revenue (as a dollar value) on the GST Remittance Form as they are trade dollars.
Q. What can I claim as an Input Tax Credit?
A. Input Tax Credits can only be claimed for the month in which goods / services were received and not paid (if using the accrual method of accounting) or the month in which goods / services were received and paid (if using the cash method of accounting). You may use only either the cash or accrual, and it must be on a continuous basis.
If you are a registered business with an NBN you are entitled to claim as an input tax credit the GST component paid on items purchased that are DIRECT inputs to the production of your good or provision of service and:
- you intend to use them solely for carrying on your business and
- the price includes GST and
- you provide payment for them and
- you have a valid tax invoice / receipt.
You are NOT ABLE TO CLAIM for the GST component:
- on the purchase of capital items
- for goods or services purchased other than those purchased on Norfolk Island from an NBN holder
- for goods or services that are of a personal or domestic nature
- if you do not have a Tax Invoice or Tax Receipt from an NBN holder
Q. Do I need to list my Input Tax Credits?
A. You are required to submit a detailed list of your Input Tax Credits claimed for each month when you lodge your Remittance Form. The list may be completed on the prescribed form or it may be a computer printout (from MYOB etc with description of the goods / services). GST Remittance Forms will not be processed unless this list is attached. Verification (i.e proof of all purchases by way of valid tax invoices / receipts) of this list can and will be requested by the GST Office at any time.
Q. Is gas subject to GST?
A. Gas is NOT subject to GST. GST is not charged on gas and therefore you cannot claim it as an Input Tax Credit.
Q. When is a Gift Voucher defined as revenue?
A. A gift voucher is classified as revenue when the voucher is purchased and not when it is redeemed.
Q. I have expanded / contracted my business activities. Do I need to notify the GST Office?
A. You must notify the GST Office of any changes to your business. This includes if you commence a new commercial activity / you sell part of your commercial activity; the contact details have changed etc.
Q. I have sold / closed down / suspended my business. Do I need to notify the GST Office?
You must notify the GST Office of the sale, suspension or closure of your business and complete a Cancellation Form.
Q. How can I contact the GST Office?
A. The GST Office is located in the buildings adjacent to Telecom in New Cascade Road. The GST Office can be contacted on telephone +6723 24110, facsimile + 6723 24130, by mail to P.O. Box 994 Norfolk Island 2899 or by email to email@example.com.
The GST website, www.gst.gov.nf contains copies of forms, Goods and Services Tax Act, Regulations, Information Sheets etc.