How to configure GST in Australia?

Modified on: Mon, 21 Mar, 2022 at 2:05 PM

Scope

Set up tax for Australia

Configuring tax for the Australian region

Summary

- Set the business profile of the organization (configure Chargebee). 

- Enable tax option and add region as Australia. 

- Configure price type (tax inclusive/tax exclusive) for the currency (AUD)

- Go to add region, choose the type of product for Australia and then configure the GST.

Solution

Step 1: Update your organization address

Make sure you've added your organization address at Settings > Configure Chargebee > Business Profile. You cannot configure taxes in Chargebee without completing this step in your initial setup.

Step 2: Enable Tax

Go to Settings > Configure Chargebee > Taxes and click the Enable Tax option. If your Chargebee site has an existing Tax Profile, you will find the option Add Region instead. You will find a list of regions to choose from, choose Australia from the list.

Step 3: Choose a Price Type

Once taxes are enabled, you will be redirected to a page containing all the currencies that you have enabled for your site. Step 3 is configuring a price type (the price that you quote for your product/service/addon can be either inclusive of tax, where tax is included in the price, or exclusive of tax, where tax is added to the price) for each of these currencies.

If you are selling to customers in Australia, then AUD will appear on your list of currencies automatically.

Step 4: Add 'Australia' to Tax Jurisdiction list

Click on Add Region and select Australia from the country list.
You will now be redirected to a GST configuration page.

Step 5: Select product type

Choose the product type, Digital or Physical, based on the products/services you are offering.

Step 6: Enter tax details

  • Tax Registration Number: Set the tax label as ABN and enter your ABN here. This will be displayed in the invoices sent to your customers.

  • Location Validation: Choose to enable location validation based on whether you have to collect and store your customers' address proof or not.

  • Collect Tax Registration Number: You can choose to collect your customer's ABN Number or not.

  • ABN Validation: Choose whether to perform ABN Validation against ABN Lookup service or not when the ABN number is entered by your customers

Step 7: Add tax rate

Finally, you will need to provide a Tax label and the tax rate that you would like Chargebee to apply to your invoices. As per GST regulation, you should set your tax rate to 10%.

Click here to know more about Australian tax configuration


Related Documentation

Tax invoice rules - GST Australia


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