It is important to distinguish between a business and a hobby. When you sell services or products with no intention of making a profit, your activity may be a hobby rather than a business.
It’s likely you’re not in business if your activities are:
- not aimed at making a profit - i.e you gift or sell your work for the cost of materials
- small in size and scale
- not carried out in an organised manner
- conducted in your spare time or when people call you
- mostly for your own satisfaction and enjoyment.
Should your activities be a hobby, you cannot claim GST credits on your purchases and should cancel your GST registration.
If you’ve already made any GST claims for your hobby, your registered BAS and tax agent can help you amend your past activity statements. For all your tax advice contact DD's Taxation and Accounting.