An ABN is a one-of-a-kind number issued by the Australian Business Register (ABR) as identification for Australian businesses. The ABR is responsible for keeping a comprehensive database of registered company information.
Customers, other businesses, and government agencies may all use the database to find you and your company. The ABR website allows you to apply for an ABN online. You must be eligible for an ABN in order to register for one.
There are a variety of reasons why people cancel their Australian Business Numbers (ABN). Perhaps you’ve chosen to cease trade, sell your company, or alter the structure of your company.
However, company owners may want to continue trading at times, but you must always reactivate your ABN first. If this is the case, you may reactivate your ABN.
Business owners who have revoked their ABN may believe they may simply resume trading. However, without an ABN, your company would be unable to be identified, and you will be in violation of the law. We’ll show you how to revive your ABN, whether it’s been inactive for a few weeks or a few years, in this post.
Possible Causes of ABN Cancellation
The ATO has the authority to cancel your ABN. If you operate a financially successful company, this may spell disaster. If the Registrar determines that a business is not eligible for an Australian Business Number, the Registrar may revoke the company’s registration (ABN).
Keep in mind that an entity is not eligible to an ABN if it is not carrying on a business in Australia or is not producing supply related to the indirect tax zone while carrying on an activity. It is important to note that carrying on a business includes actions performed in the process of ending the company.
Whether such actions are related to the termination is a matter of fact and degree, and will depend on the facts of each individual instance. Keep in mind that the Registrar has the authority to revoke an entity’s registration if the identification under which the entity or its affiliate is registered is not their actual identity.
It’s also important to understand that individuals cancel their Australian Business Numbers (ABN) for a variety of reasons. Perhaps you have chosen to cease operations, sell your company, or alter the structure of your company. Business owners may want to restart trading at times, but you must always reactivate your ABN first.
Every Australian company owner must be aware of the laws and how to prevent ABN revocation. The Australian Business Register (ABR) reviews its records for Australian business numbers (ABNs) on a regular basis and automatically cancels any that seem inactive.
What Happens If You Lose Your ABN?
If your ABN is revoked, you have no legitimate business and are thus functioning illegally. Would you conduct business with a criminal and then be unable to claim a valid tax deduction? You wouldn’t, so neither would your consumers.
Business owners who have revoked their ABN may believe they may simply resume trading. However, without an ABN, your company would be unable to be identified, and you will be in violation of the law.
Once your ABN has been cancelled, you should check the ABR website’s ABN search tool to see whether the status has changed from active to cancelled. You must also verify that you have fulfilled any outstanding commitments.
You will also need to cancel any Goods and Services Tax (GST) and Pay Since You Go Withholding (PAYG) registrations connected to the cancelled ABN, as these do not immediately expire. In addition, you should file any overdue income tax returns or company activity statements.
Should I reactivate or just update my ABN?
Reapplying for an ABN is only possible if your current ABN has been revoked. On the ABN lookup tool, you’ll be able to see which one applies. If your ABN is still valid, you must update the information of your new endeavor within 28 days.
The easiest method to do this is via your AUSkey, however it may also be done online or by calling the ABR (Australian Business Register).
If your ABN has been cancelled, you must go through the procedure of having it reinstated. This is due to the fact that quoting an inactive ABN in a transaction is illegal. Furthermore, if your company earns $75,000 or more per year, you cannot trade without a valid ABN and here is how to reactivate your ABN in four simple steps.
4 Steps to Reactivate Your ABN
You just need to reapply for your ABN after you’ve verified that it’s been revoked.
1. Complete the basic registration information
Enter your basic contact information, such as your email address, phone number, name, and company location (N.B this has to be a physical address and not a PO box).
Furthermore, if you want to choose an authorized contact for application updates to be forwarded to – such as an accountant – you may do so along with your TFN (Tax File Number).
2. Provide information about your company.
Answer the four “yes” or “no” questions honestly. Check “YES” for the fourth question, which asks whether you’ve previously held an ABN, and input the information appropriately.
To ensure we have a fast turnaround time, you can also enter what date you require the re-activated ABN from as well as what states and territories your business operates in too.
3. Complete the GST & Business Name form
Fill out the information in the final form appropriately to ensure that any further concerns are fulfilled.
4. Confirmation and finalization
Once you’ve finished filling out all of the fields, double-check that you’ve entered the right information. Your ABN will be renewed within 24 hours.
You may also reapply via the ABR website. The system will then look for your prior ABN. When you check up your ABN once it has been authorized, the status should change to ‘Active.’
What About a New ABN?
If you have never applied for an ABN before, you can do it online in less than 5 minutes. The advantage of doing so is that the turnaround time will be reduced, allowing you to obtain your ABN as soon as feasible.
To summarize, there are many methods to activate your ABN, and it is a very easy and uncomplicated procedure to follow.
There are many reasons why an Australian Business Number (ABN) may be revoked. As a company owner, you may elect to restart operations after your ABN has been revoked.
However, you must determine if you may revive the revoked ABN or whether you must obtain a new ABN.
It is important to note that you may revive your cancelled ABN as long as you are eligible for one. In the case of a fresh application, you must demonstrate that you are doing business in Australia or that you have a foreign company conducting business in Australia.
Furthermore, while reactivating a cancelled ABN, you must reapply for the ABN via the ABR. During the application process for a new ABN, you may include your prior ABN.
There is no cost for reactivating a cancelled ABN. If you need to re-register your company name, you may have to pay a charge.
When you reinstate a cancelled ABN, the ATO may undertake a manual review. This manual assessment may decide whether or not you are eligible for an ABN. If your company structure stays the same, you may reapply for the same ABN.
If the structure of your company has changed, you will need to apply for a new ABN.