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  • Wondering what an input tax credit is?

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    3 May 2019

    An input tax credit is also known as a GST credit.

    It's a credit you can claim for the amount of GST included in the price of goods or services (the inputs) you buy for use in your business.

    Tips:

    • You can only claim an input tax credit if you are registered for GST.
    • Not everything will have GST included in the price, for example if you buy fresh vegetables to use in your restaurant, these would be GST-free sales to you.
    • You can find the amount of GST on the tax invoices issued to you.
    • If you buy an item for both business and private purposes, you can only claim an input tax credit for the business portion.
    • You can't claim an input tax credit on items you buy to make input-tax sales. For example if you rent out residential premises you cannot claim credits on repairs and maintenance.
    • You need to keep your tax invoice for purchases that cost more than $82.50 (including GST).

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