Can anyone give me a definitive answer on GST and digital products eg Dropbox and Facebook that state GST on their invoices? Is it an input tax or can we claim the entire GST?
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Your business clients will likely be making a mess of this.
Most digital providers, eg dropbox, adobe, etc are registered for GST.
If your business client quotes their ABN at time of purchase, the foreign digital supplier can make the supply without GST.
If your business client does not quote their ABN at time of purchase, the digital supplier must add GST to the supply.
If GST is added, your business client should claim the input tax credits.
As always, the Tax Invoices should tell the correct story.
Bank feeds not sufficient to prepare accounts correctly.
You're welcome.
Hi @KellyB14
@Colin_Oscopy is right on all fronts. The only thing I would mention is that when GST is charged incorrectly, your first action should be to contact the supplier and try to get it refunded.
If you're charged GST incorrectly you're able to claim a GST credit as long as the following conditions are met:
- you would normally be entitled to a GST credit for the purchase
- you have a valid tax invoice OR the amount paid is less than A$82.50
- There was no reimbursement for the GST
- You have no information indicating the GST amount has been paid to us.
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