Question A: Harry is operating a trading business with an annual turnover of $500,000. He exports some goods upon which he doesn't have to charge GST. He also lends money to some New Zealand borrowers upon which he charges interest but again does not have to charge GST on the money lent and the interest charged.
a. Explain how each transaction is classified for GST purposes.
b. Explain the difference in the GST treatment for the export sales and the lending of money.
Question B: Sally operates a small part-time business from home. Her turnover is $25,000 pa meaning that GST registration is optional for her. Should Sally voluntarily register for GST? What factors should she consider in making this decision?