ato

 
 
Show download pdf controls
Show print controls

  • Reporting GST amounts and claiming GST credits 

    Businesses use business activity statements (BAS) to tell us:

    • how much the business earned
    • the amount of GST collected
    • GST the business paid for goods and services.

    Keep the GST you've collected separate; this makes it easier when it's time to pay your BAS.

    When you get your BAS, fill it in, send it to us and pay any money you owe by the due date. The due date is on the BAS.

    Claim back GST paid to suppliers (GST credits)

    You can claim back any GST you paid for things you have bought for your business. This is called a GST credit.

    To claim a GST credit for a purchase that cost more than $82.50 (including GST) you:

    • must be registered for GST
    • have a valid tax invoice that records what you have purchased for your business.

    To claim a GST credit for purchases that cost $82.50 or less (including GST), you must:

    • be registered for GST
    • keep documents such as cash register dockets, receipts or invoices to support your claims.

    You must also keep your tax invoices and other GST records for five years.

    Example: registering for GST

    Anh's bakery sells a variety of pre-packaged drinks, including soft drinks and flavoured milks such as chocolate milk.

    Every three months, Anh purchases 200 pre-packaged chocolate milks from her supplier for $110 which includes $10 GST. She receives the invoice from her supplier and she pays the supplier $110.

    As Anh's business is registered for GST she can claim the $10 GST as a credit on her BAS. Anh needs to keep her tax invoice to do this.

    End of example

    Find out more:

    Tax invoices

    In most cases, a business or supplier selling the goods or services provides a tax invoice. When you receive this invoice, make sure it includes:

    • the supplier's business or trading name
    • the supplier's Australian business number (ABN)
    • the date of the tax invoice
    • a brief description of the items sold including the quantity and the price
    • the GST amount payable (or a statement that says 'The total price includes GST')
    • your business name or ABN (if the taxable sale is $1,000 or more)
    • the document is intended to be a tax invoice.

    Issuing a tax invoice

    If a customer asks for a tax invoice, you must provide one within 28 days. You must be registered for GST to issue a tax invoice.

    Example: preparing a tax invoice

    Anh's bakery is getting a lot of catering orders lately. She knows that sandwich, cake and fruit platters will include GST in the price. She prepares a tax invoice for her clients and clearly states the GST she has charged. She sends the tax invoice along with their order so she doesn't forget to do it later.

    End of example

    See also:

      Last modified: 23 Jul 2019QC 59733