Tips for claiming GST credits
Updated: Feb 16
Just having an ABN does not mean that you are necessarily GST registered. Please check with your Tax Agent or Bas Agent to check if your ABN is GST registered. You cannot and must not charge GST when you are not GST registered.
If your turnover reaches $75,000 you will need to register for GST. Even if you sell GST exempt goods or services. Need to register for GST?
QUICK TIP : Always check ABN Lookup to ensure that your suppliers ABN is valid and registered for GST if they have charged you GST.
If you are GST registered you are eligible to claim GST credits for most of your business purchases.
However, there are some things that are GST Free or that you can't claim for certain reasons.
If your suppliers aren't registered for GST, you can't claim GST credits on your Bas. Even if they have given you a tax invoice with a GST amount on it.
Things such as basic foods, some medical goods or services and other items are GST free .
Remember to check your tax invoice and only claim the GST amount. Eg. if you purchase staff amenities from the supermarket, you may need to split your transaction as water will not include GST, however, toilet paper will. Always check the GST portion on the invoice.
If you use the item for both personal and business purposes eg: sunglasses for a Pool technician. You can only claim the business use portion. (%)
There is no GST on Wages, Directors loans or drawings
Did you Know? Bank Fees are generally GST free, however in most cases, credit card merchant fees attract a GST credit. Check your Merchant statement
In Queensland, Car registration fees are GST free, however, there is a small portion of GST on your CTP insurance. Always check your car registration invoice to pick up the Correct GST portion
NEED HELP? If you are a small business, with no debtors or creditors, we have a useful spreadsheet to help you prepare your Bas or we can do it for you.
Give us a call to discuss your needs and how we can help. 0409715577