09 Mar Check GST credit claims before lodging BASs

Posted at 00:44h in Uncategorized by

Taxpayers who are registered for GST can claim GST credits (or ‘input tax credits’) for the GST included in the price of goods and services they buy for their business.

However, if they buy something for both business and private use, they need to apportion their GST credit to only claim the business use.

For example, if they buy a car for ride-sourcing (e.g., to use as an Uber driver), they should work out the percentage they use it for business purposes and only claim a GST credit on that amount.

Editor: Please contact our office if you require assistance with any of this, including potentially using ‘annual private apportionment’ to account for the private portion of your business purchases.

When completing their next BAS, the ATO is asking taxpayers to remember that they cannot claim GST credits for purchases:

  • where they do not have a tax invoice;
  • that were cancelled or reversed; or 
  • that do not have GST in the price (such as bank fees).

Taxpayers that have nothing to report still need to lodge a ‘nil’ BAS by the due date.