Can we claim GST from a second hand motor vehicle which is purchased from a GST registered seller?

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 · Accepted Answer

EthanATO · Answer

If you're registered for GST and are purchasing a vehicle with GST included in the price, you're able to claim a GST credit. You'll only be able to claim a proportion of the credit equivalent to the business usage of the vehicle (50% business use, claim 50% of the GST charged). If you purchase a vehicle over the car limit, your maximum GST credit claimable will be 1/11th of the limit which is $64,741. This is again then proportioned based on the business usage of the vehicle. You can read more about this on our GST and motor vehicles (https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Motor-vehicle-and-transport/GST-and-motor-vehicles/) page.

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