Your client is Shannon Johnstone. After two years of testing the heating and cooling mats he developed for dogs, Shannon registered the business name ‘Warm or Frosty Pet Mats’ on 1 July 2020. Shannon projects his sales for the year ended 30 June 2021, excluding GST, to be the following:Sales to pet stores and vet clinics in Australia, $70,000;Export sales to pet stores and vet clinics in New Zealand, $12,000. REQUIRED:Based on the projected sales, advise Shannon Johnstone whether he was required to register for GST on 1 July 2020.Explain why a business would voluntarily elect to register for GST where the projected turnover is less than the registration threshold.

Definition: Goods and Services tax (GST): GST is an indirect tax which is levied on goods and…

Answered: GST | bartleby

Business

Accounting

GST

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 52P

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