Hi team,
A sole trader purchased a new car (under 1 tone and less than 9 passengers, under car limit) in May 2023, and the car will be partially used for his sole trader business.
The sole trader is registered for GST, and he is able to claim a partial GST based on how much the car is used to carry on the business.
Could you please advise how the "partial" is determined, and the sole trader estimated the car will be used 30% for business, can he claim 30% of the GST credit in the MV price ? When purchase the MV, there would be no logbook available as the MV was not used yet. Would the 30% estimate by the sole trader be sufficient to claim the GST ?
Noted the example on QC 16374, if Darren plans to use the MV 50% for her business, and she can claim 50% of the GST credit on the MV purchase. Therefore, ATO would accept the planned / estimated business percentage to claim GST in MV purchase.
Could you please advise how the above as no details on ATO website how to work out the partial GST in MV purchase ? Thanks.
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