• Exceptions to the four-year time limit for GST credits

    There are some exceptions to the four-year time limit for claiming GST credits.

    For tax periods starting before 1 July 2012, you are still able to claim a GST credit for a purchase beyond four years if one of the exceptions applies.

    Exception category

    An exception applies if all the conditions below for that category apply:

    You notify us, or we notify you, of your entitlement to a GST credit

    • you notify us or we notify you, of your entitlement to the credit
    • you gave us the notice, or we gave you the notice, within four years of the end of the earliest tax period in which you could have claimed the GST credit – setting aside any requirement to hold a valid tax invoice.

     

    A GST credit relates to an outstanding indirect tax debt that we have notified you of

    • we notify you of your requirement to pay an outstanding indirect tax debt – with the result that the debt will not cease to be payable by you four years from the time it became payable
    • your GST credit arises out of the same circumstances that gave rise to all or part of the outstanding indirect tax debt
    • we gave you the notice within four years of the end of the earliest tax period in which you could have claimed the GST credit – setting aside any requirement to hold a valid tax invoice.

     

    A GST credit relates to an outstanding indirect tax debt that we are satisfied was avoided by fraud or evaded

    • we are satisfied that payment of an outstanding indirect tax debt that you owe was avoided by fraud or evaded – with the result that the debt will not cease to be payable by you four years from the time it became payable
    • your GST credit arises out of the same circumstances that gave rise to all or part of the outstanding indirect tax debt.

     

    Attention

    The exceptions do not apply in relation to claiming a GST credit if the GST on the sale (to you) of the item you purchased has ceased to be payable by the seller (for a reason other than the seller has paid it) and, at the time of the cessation, you do not hold a tax invoice.

    End of attention

    Example 3

    On 4 June 2011, Tim the tiler, from example 2, notifies us in writing of his entitlement to a GST credit for his purchase of tools. The earliest tax period in which Tim could have accounted for his GST credit was the period ending on 30 June 2007 – setting aside the requirement to hold a valid tax invoice. As Tim notifies us within four years of this date (30 June 2011), the first exception listed in the table above applies and the four-year time limit will not apply to the claiming of the GST credit.

    End of example
    Attention

    For tax periods starting on or after 1 July 2012 the above exceptions do not apply.

    End of attention

    Find out more

    Exceptions that may apply to these tax periods – Guide to self-assessment for indirect taxes

    End of find out more
      Last modified: 27 May 2014QC 22778