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  • The essentials of claiming GST

    When your NFP organisation makes purchases, you can only claim GST credits if you meet three criteria:

    • Your business is registered for GST.
    • The purchase price includes GST.
    • You have proper tax invoices for purchases above $82.50 (including GST).

    Make sure you check the tax invoices for the amount of GST paid, rather than dividing total business costs by 11. Some basic food items like fruit and vegetables are GST-free and can't be claimed on your activity statement.

    If the invoice says 'price includes GST', you can divide the total purchase price by 11, provided you use the item solely for business purposes. If the item includes private use, you can only claim a GST credit for the portion used for business.

    If you record GST for cash purchases and you've only paid for a portion of it, you can only claim a GST credit on the paid portion.

    You must keep valid tax invoices for business purchases over $82.50 (including GST). Other documents like bank statements, purchase orders or delivery receipts are not allowed.

    Remember, registered tax agents and BAS agents can help you with tax advice.

    Find out more:

    Last modified: 02 Apr 2019QC 58469