Knowing what you can claim as a GST credit can sometimes seem confusing. Five of the most common mistakes are:
1. Claiming too late
You can only claim GST and fuel tax credits from up to 4 years from the due date of the activity statement in which they could first be claimed. After that, you can’t claim those credits.
2. Claiming credits relating to private expenses
You can only claim the portion of a purchase which you have used for business purposes.
3. Claiming credits for GST-free items
Some items are GST-free and no GST credits can be claimed (such as fresh food and some medicines).
4. Claiming incorrectly when purchasing a car
If the vehicle price is above the car limit, the maximum GST credit you can claim is 1/11th of the limit. The car limit for 2017-18 and 2018-19 is $57,581 – which means the maximum GST credit you can claim would be $5,234.
5. Claiming credits without supporting documentation
When you make any GST credit claim remember to keep the supporting documentation for that purchase, such as a valid tax invoice.
If you have any queries regarding claiming GST, please give us a call on (08) 9321 2642!