The Australian Business Number (ABN) is an essential piece of information for any business operating in Australia. Companies can use it to pay tax, register with the ATO, and provide a unique identifier for their business. However, it’s possible that you could need to cancel your ABN at some point – here are eight things that you will want to know about how to cancel abn if that happens:
-
You can cancel your ABN online
If you decide that you no longer need your ABN, you can easily cancel it online. This will take just a few minutes and can be completed on the ATO website.
You will need to provide some information about yourself and your business, including the reason for canceling your ABN.
-
You’ll need to deregister with the ATO
Once you’ve canceled your ABN, you will need to deregister with the ATO. This can be done either online or by filling out a paper form. Again, you will need to provide information about your business, when it closed, and why.
-
You’ll need to finalize your tax affairs
Once you’ve canceled your ABN, you will need to finalize your tax affairs. This means ensuring that all of your business activity has been reported and that you have paid any outstanding taxes. If you haven’t done this already, it’s essential to get on top of this as soon as possible.
-
You may need to pay GST
If you have been registered for GST and canceled your ABN, you will need to continue paying it. The ATO will still consider your business to be active – even if you’re no longer operating under an ABN.
-
There are privacy considerations
If you’re planning on closing your business, canceling your ABN is an excellent step. However, there will still be some records regarding it online – such as with ASIC and AUSTRAC. You may also want to consider how this information is used by organizations that you haven’t closed down yet.
-
There are tax considerations
Before you cancel your ABN, it’s worth considering its implications on your business. Withdrawing an ABN will change how GST and other taxes apply to your business – which can affect whether or not you owe money or receive a refund at this time. It could also make any future transactions more complicated for your business.
-
It can take up to three months
If you want to cancel your ABN, this must be done well in advance. This could be before or after closing down a business – but it will only take effect once the process has been completed. You should aim for at least 14 days prior so as not to cause any problems with outstanding tax obligations.
In conclusion, canceling your ABN can be a complicated process. However, if you’re prepared for it and take the time to understand the implications, it can be an effective way to close down a business.
