If my business acquires an electric vehicle and claims the rebate in NSW, is there any GST payable on the rebate received? Besides, is the rebate taxable income or non-assessable non-exempt income of my business? My business is GST registered.
Hi @robin.liu,
The rebate is considered a separate sale from the purchase of the vehicle. If you're registered for GST, then GST will be payable on the rebate amount. The two transactions are the purchase of the car, and then, if you're eligible, a second transaction for the NSW government rebate.
The rebate will be assessable income. This is because you'll be using the car to earn income.
You'd depreciate the car for the full taxable value (that is, the percentage used for business) and claim the GST on that portion when you lodge your business activity statement.
We've some fantastic information on our web site that talks about accounting for a rebate as a separate sale and decline in value of depreciating assets.
Hi @robin.liu,
The rebate is considered a separate sale from the purchase of the vehicle. If you're registered for GST, then GST will be payable on the rebate amount. The two transactions are the purchase of the car, and then, if you're eligible, a second transaction for the NSW government rebate.
The rebate will be assessable income. This is because you'll be using the car to earn income.
You'd depreciate the car for the full taxable value (that is, the percentage used for business) and claim the GST on that portion when you lodge your business activity statement.
We've some fantastic information on our web site that talks about accounting for a rebate as a separate sale and decline in value of depreciating assets.
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