Changing your business structure can have significant impacts on your business operations and financials, and it is important to consider all factors before making a decision. If you are changing from a sole trader to a company or from a partnership to a trust, for example, you will need to cancel your existing ABN and apply for a new one.
It is essential to update your ABN details on all of your tax invoices, as your ABN is used to identify your business identity and to claim GST credits. Other businesses and entities must withhold payment at the top tax rate if the ABN quoted on the invoice is incorrect or if the details do not match up.
In addition, you must also update your GST registration details whenever you get a new ABN. This is important in order to ensure that you are able to claim the right amount of GST credits and avoid any payment withholding issues.
Before changing your business structure, it is recommended that you seek advice from your tax advisor. This is because there may be significant tax consequences that you need to be aware of, and a tax advisor can help you navigate these and ensure that you are making an informed decision.
In conclusion, changing your business structure can have significant impacts on your business and it is important to consider all factors before making a decision. Seek advice from your tax advisor and make sure that your ABN details are updated on all of your tax invoices and your GST registration details are updated when you get a new ABN.
