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  • Adjusting for assets retained after cancelling GST registration

    If you cancel your GST registration and still have business assets for which you previously claimed GST credits, you may need to repay some of those credits. You do this by making an 'increasing adjustment' on your activity statement.

    For example, if you sold your business you would cancel your GST registration and sell most of your business assets with the business. But you may keep some business assets, such as a work vehicle.

    If you've held a business asset for a certain period of time you don't need to repay the GST credits – for example, you usually wouldn't need to repay GST credits on a car held for more than five complete financial years.

    For each asset you retain you need to:

    • work out if it's 'adjustment periods' expired before you cancelled your GST registration
    • if the asset's adjustment periods haven't expired, calculate the adjustment amount and include it on your activity statement.

    You don't need to make any adjustments for assets if the registration cancellation relates to a deceased estate.

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      Last modified: 31 May 2017QC 40230