Scrap metal: claiming GST credits

If you're a GST-registered scrap metal dealer, you can claim GST credits for purchases you make that are:

• for business use, not to make input-taxed or private sales
• subject to GST.

You must have a valid tax invoice to claim GST credits for purchases greater than $82.50

This applies to scrap metal and equipment (such as trucks, and sorting and crushing machinery) that you use in your business. You can claim GST credits even if the sale you then make is GST-free – for example, a GST-free export of scrap metal.

To claim GST credits on goods you purchase for export you must buy them from a GST-registered seller. You must hold a tax invoice from the seller.

How you claim GST credits differs when:

• Purchases from GST-registered sellers
• Purchases from sellers not registered for GST.