What to do with GST when not registered for GST


Just after some advice on how to proceed.

Currently my business isn’t registered to pay GST so I issue invoices that just say “Invoice” and I don’t have any Tax Codes added into Manager.

Now, I need to purchase an item from a company that charges GST and I am selling the item to one of my customers who also pays GST. The company I am purchasing the product from requires a Purchase Order so I have created a PO in Manager and added the item into the PO excluding GST.

So I’m wondering what to do with the GST? Should I add the GST as a separate line item to the Purchase Order?

Also when I come to sell the item to my customer should I be charging him the GST? I’m sure he will want to claim GST credits on the item. If so how can I do it?

Thanks for any help

You don’t need to show GST as a separate line item to the Purchase Order.

Unless you are registered for GST you cannot charge your client the GST as a separate line item. You can charge your client the purchase order amount but cannot show the GST separately. The client cannot claim GST unless you are registered for GST and issue a tax invoice showing the GST.