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  • Purchases from GST-registered sellers

    You may be able to claim GST credits when you purchase from GST-registered sellers. The amount you can claim as a GST credit is normally 1/11th of the cost of a purchase.

    Find out about:

    What you need to make a claim

    In order to claim a GST credit for a purchase greater than $82.50, you will need to hold a tax invoice from your seller or a recipient-created tax invoice (RCTI).

    For purchases less than $82.50, you will need proof of purchase, such as a receipt or documentation that includes:

    • the name and address of the seller
    • a description of the type and quantity of the goods
    • the date and cost of the purchase.

    When to claim GST credits

    If you are a small business, you can choose to account for your GST obligations on either a cash or a non-cash basis.

    If you use cash accounting, you can claim the GST credit in the tax period you:

    • provide payment for the purchase
    • hold a tax invoice for the transaction.

    If you use non-cash accounting (accruals), you can claim the GST credit in whichever is the earlier of:

    • the tax period in which you make any payment for the purchase
    • the tax period when a tax invoice is issued to you, or you issue a recipient-created tax invoice (RCTI).

    You may issue RCTIs for scrap metal you buy from registered sellers. To do this you must be a scrap metal dealer and have a written agreement with the seller. Written agreements must comply with the conditions set out in determination RCTI 2009/1.

    Whether you account on a cash or non-cash basis, you must document your transactions.

    See also:

      Last modified: 24 May 2017QC 17303