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Disclaimer
This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1013097975580

Date of advice: 28 September 2016

Ruling

Subject: Goods and services tax (GST) and purchase of a business asset

Question

Can you claim $X input tax credit on your purchase of a specified business asset (asset) in a particular quarterly Business Activity Statement (BAS)?

Answer

Yes.

You are entitled to a $X input tax credit on your purchase of the asset as:

    • you acquired the asset entirely for a creditable purpose

    • the sale of the asset to you was a taxable supply for GST purposes

    • you provided consideration (the purchase price) for the supply of the asset, and

    • you are registered for GST.

You can claim the $X input tax credit in a particular quarterly BAS as:

    • you, account for GST on a cash basis

    • you paid for the asset in full in that quarter, and

    • you will hold a tax invoice when you lodge your BAS for that quarter.

Relevant facts and circumstances

You have been registered for GST since a specified date.

You, account for GST on a cash basis and report GST quarterly.

You are carrying on a specified business and are therefore using these types of assets in your business.

You purchased the asset for a specified price (inclusive of $X GST) on a specified date. You paid for the asset in full, and received a tax invoice on that date. You did not purchase the asset under a hire purchase arrangement.

The vendor is registered for GST. The vendor sold the asset to you in the course of their business. The asset was supplied to you wholly within Australia.

The asset will be used 100% for business purposes.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 9-5

A New Tax System (Goods and Services Tax) Act 1999 section 9-70

A New Tax System (Goods and Services Tax) Act 1999 section 11-5

A New Tax System (Goods and Services Tax) Act 1999 section 11-25

A New Tax System (Goods and Services Tax) Act 1999 section 29-10


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