You cannot claim a goods and services tax (GST) credit:
- if you are not registered for GST
- for purchases that do not have GST in the price, including
- where the sale to you is GST-free (such as basic foods)
- where the sale to you is input-taxed (such as residential accommodation, bank fees and loan interest)
- purchases from a supplier that is not registered or required to be registered for GST (and therefore cannot charge GST)
- for wages you pay to staff (there is no GST on wages)
- if you do not have a valid tax invoice for purchases that cost more than A$82.50 (including GST) when you lodge your activity statement, however, there are specific circumstances where GST credits can be claimed without a tax invoice.
You also cannot claim GST credits for some purchases (even if GST is included in the price), including:
- to the extent that a purchase is for a private or domestic purpose
- to the extent that a purchase is for making an input-taxed supply (such as those associated with providing residential accommodation)
- for real property purchased under the margin scheme
- for some purchases that you cannot claim as an income tax deduction (such as entertainment expenses)
- for the part of the purchase price of a car that is over the car limit amount for the relevant financial year
- where the time limit for claiming a GST credit for the purchase has ended.
See also
- GST-free-sales
- Input taxed sales
- GST and motor vehicles
- GST and the margin scheme
- Tax invoices
- Time limits on GST credits and refunds