GST registered businesses can claim GST input tax credits of the GST included in the price of goods or services purchased for use in the business if a valid tax invoice is held. The retention of a tax invoice is not required for purchases less than $75 GST exclusive. While this concession was enacted to save on the retention of tax invoices for relatively small amounts, we recommend that tax invoices be held or be scanned for computer storage. Please note that GST registered businesses must issue a tax invoice for the sale of all goods and services regardless of price.
GST input tax credits can only be claimed if purchases are made relating to the making of either:
GST input tax credits cannot be claimed on purchases relating to the making of input taxed supplies (e.g. selling financial products or second hand property).
Click HERE to download the full edition of The Business Accelerator Magazine for March 2018.