Goods and Services Tax

[Australian Cattleman]

We have a system here in Australia called GST. We have to add 10% to all the cattle we sell. For instance a $2,000 bull costs the purchaser $2,200.
At the end of each three months we have to do a business activity statement. This is forwarded off to the Tax Office,we have to declare all the GST that we have collected (when we sell cattle) and then can claim any GST that we have paid. Most goods used on farm are able to have the GST claimed. We usually only have to pay money to the tax office for one quarter in the year. That is the quarter that we sell most of our cattle. Its a pain in the neck with this extra paper work,the only advantage is that it makes us have our paperwork up to date when we complete our end of year tax assessment.
There are very few items that don't have GST added.
Can't see much sense in it,its a government money maker.
Colin

 

[Maple Leaf Angus]

We have a similar system in Canada, Colin, also called the GST! (Goods and Services Tax) Our purchased feed, fertilizer, baler twine and livestock are exempt as is most machinery and parts. We can reclaim from the Gov't (what we do pay it on) for agricultural purposes. This is also done quarterly.

The rate is 7%.

It kind of makes all of us tax collectors, doesn't it.

 

[Australian Cattleman]

It sure does make us tax collectors for the government. New Zealand has had the GST for a lot longer than us,I think there's is 10% as well. We've had ours for about 4 years now I think.
Colin