Tips for claiming GST credits

You can claim GST credits for most business purchases. However, there are some things that are GST-free or that you can’t claim for various reasons.

  • If your suppliers aren’t registered for GST, you can’t claim GST credits. That applies even if they give you a tax invoice with an ABN and GST amount on it.

  • Use the ABN Lookup online tool to check if your suppliers are registered for GST. It’s also available in the ATO app.

  • Things such basic foods, some medical goods or services and other items are GST-free.

  • Check your tax invoices and only claim the amount of GST shown.

  • If you use an item for both personal and business use, you can only claim the business portion.

  • There is no GST on wages you pay to staff.

  • There are also some property transactions where you can’t claim GST credits. For example, you can’t claim GST credits when buying a property using the margin scheme or build-to-rent developments.

As part of your record keeping, remember to keep your tax invoices.

Call us on (08) 8362 4555 to see how we can help you with your tax. 

Source: ATO January 2021

Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Newsroom/smallbusiness/GST-and-excise/Tips-for-claiming-GST-credits/.

Important:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. 

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on print
Share on email