In 99% of cases cafes will be required to charge GST at 10%. You should factor this into your pricing by incorporating an extra 10% onto your menu prices. Then when calculating your GST for the period you simply take 1/11th of the price as the GST, eg $1 plus 10% = $1.10, divide $1.10 by eleven and you get the GST on the total price you charged. This is a fairly basic answewr there are a few other ways you may be able to operate and account for GST, see a good accountant if you are serious about starting a business, as you don't want to be walking in blind especially in such a competitive market as the restaurant industry.
All business (that are registered for GST) in Australia collect and pay GST. Cafes advertise their pricing to the public as GST inclusive. The difficult thing in a food business is that some of your products will need to include GST whilst some are GST free. Most cash registers / POS systems will account for this by using department codes for the products which will give a daily breakup of your sales and give you a total of the GST collected. Some smaller cafes that don't have a complex cash register system use the ATO's norms percentages. This allows the cafe owner to claim xx% of their sales and purchases as GST free. The percentage rate will depend on a few things and is something that your accountant can advise you on.
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In 99% of cases cafes will be required to charge GST at 10%. You should factor this into your pricing by incorporating an extra 10% onto your menu prices. Then when calculating your GST for the period you simply take 1/11th of the price as the GST, eg $1 plus 10% = $1.10, divide $1.10 by eleven and you get the GST on the total price you charged. This is a fairly basic answewr there are a few other ways you may be able to operate and account for GST, see a good accountant if you are serious about starting a business, as you don't want to be walking in blind especially in such a competitive market as the restaurant industry.
Hi,
All business (that are registered for GST) in Australia collect and pay GST. Cafes advertise their pricing to the public as GST inclusive. The difficult thing in a food business is that some of your products will need to include GST whilst some are GST free. Most cash registers / POS systems will account for this by using department codes for the products which will give a daily breakup of your sales and give you a total of the GST collected. Some smaller cafes that don't have a complex cash register system use the ATO's norms percentages. This allows the cafe owner to claim xx% of their sales and purchases as GST free. The percentage rate will depend on a few things and is something that your accountant can advise you on.
If you are unaware of the basics, don't go into business or alternately seek the services of an accountant..You need one.
Does a butcher charge GST? Or is it just incorporated in the price.
Oh my Goodness. I suggest you read a little bit more. The ATO has some very good literature on the matter.
Yes, you incorporate the GST in the pricing.