Simply put, you can claim GST when these four conditions apply, as laid out by the ATO:
1. You intend to use your purchase solely or partly in carrying on your business and the purchase does not relate to making input-taxed supplies
2. The purchase price included GST ( i.e. the supplier isn’t GST non registered, the item purchased was GST free such as fruit, vegetables, raw good, a fine or government fee etc)
3. You provide, or are liable to provide, payment for the item you purchased (you cannot claim a GST credit on something YOU didn’t pay for)
4. You have a tax invoice from your supplier (for purchases more than $82.50) – the supplier has 28 days to provide a tax invoice after you request one.
** if the purchase is less than $82.50 you don’t require a full tax invoice, however one of the following should be kept on file
- a cash register docket
- a receipt
Still unsure about what you can claim or can’t claim? Want a GST audit done on your accounts prior to lodging your BAS? We can ease the burden of these area of your business! Touch base today and we can get started!