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  • What's an input tax credit?

    You might see the term 'input tax credit' in some of our web content. An input tax credit is also known as a GST credit.

    If your NFP is registered for GST you can claim an input tax credit for any GST included in the price of goods and services bought in carrying on your activities.

    To claim input tax credits you must be registered for GST.

    Tips:

    • As a NFP, you need to register for GST if your GST turnover is $150,000 or more.
    • Not everything you buy for your NFP will have GST included in the price, as some sales may be GST-free or input taxed. For example, if you buy fresh vegetables for your soup kitchen, this would be GST-free.
    • You must have a tax invoice for purchases that cost more than $82.50 (including GST) before you can claim an input tax credit.
    • You can find the amount of GST on the tax invoices issued to you.
    • You cannot claim an input tax credit for GST included in the price of the items purchased for input taxed sales.
    • You can claim your input tax credits in fortnightly, monthly or quarterly business activity statement (BAS) depending on your lodgment cycle.
    • Check ABN LookupExternal Link to see if your suppliers are registered for GST.

    Find out more:

    Last modified: 06 May 2019QC 58786