ABN or Australian Business Number is not compulsory in Australia for all businesses, organizations, and enterprises. However, when it comes to dealing with ATO (Australian Tax Office), ABN allows the tax authorities to identify your business in Australia easily via verifying its activities using a unique 11 digits code. This code is known as the Australian Business Number. More often than not, several newbie entrepreneurs in Australia avoid registering for ABN because of reasons such as – high registration fees and long application time. But, this causes the businessman to avoid the importance of ABN and benefits of Australian Business numbers.
In this reading, you will find about the same under the guidance of ABN Master experts who ensure that every business receives governmental advantage through ABN. Let’s get started!
no-ABN withholding Rule
To begin with, the Australian Government does not force businesses to apply for ABN. However, if you as a businessman avoid getting an ABN, you will have to follow the guidelines of “No-ABN withholding rule.” This rule mainly impacts the sales of the business. According to this rule, a business without ABN sells its products under the obligation of withholding 47% of sales. In order to eliminate the risk of this rule, you can follow a few solutions:
- Apply for ABN
- Or, get a statement by your supplier.
However, the first solution is the best. ABN also helps your business to grow legally in Australia along with a governmental verification system.
Easy Tax transactions
No wonder businessmen keep worrying about taxes in Australia. For the reader’s information, any business that holds equivalent to or more than $75, 000 GST Turnover is liable to apply for ABN. Apart from this, ABN helps to make easy tax transactions and directly communicate with the tax authorities. The 11 digit code officially known as ABN in Australia works as an identification number for your business. Therefore, you can also avoid any type of confusion while taking or giving orders for products and services as well as invoicing.
Registration for GST
GST stands for Goods and Services Tax. In Australia, any business that has GST turnover valuable to $75, 000 and above is obligated to register for GST. But, it is noteworthy to mention that in the absence of Australian Business Number, such business cannot apply for GST and neither remains applicable to enjoy the benefits of GST credits.
Build an online existence
Without a doubt, each business comes to a point when it demands customers online. But, is it that easy for businesses to build their online existence? Well! Not in case of businesses without an Australian business number. If you do not have an ABN, you cannot use “.com.au” for your business domain online.
To register for ABN know the importance of ABN, connect with ABN master today and change your business’s future.