Hi all, if I purchase a car under my company for $103,000 is it true that I can not claim the full 10% if the $103,000 for GST.
Also am I liable for the luxury car tax? If so, how does that work.
Thank you
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Hey @Annoymous1234,
Yep, this is correct!
Claiming GST on car purchases works a little differently.
You're generally entitled to claim a GST credit, for the GST included in purchased of new car, provided you have a tax invoice, and you use a motor vehicle solely in carrying on your business and you're registered for GST.
If you only partially use the vehicle for business purposes, you'll only be able to claim a percentage.
If you purchase a car for more than the car limit, the maximum amount of GST credits you can claim is one-eleventh of that limit.
when you purchase a luxury car, you may be charged a luxury car tax, you can't claim a credit for any luxury car tax that you pay when you purchase your luxury car.
Checkout the info we have on purchasing a motor vehicle.
All replies
Hey @Annoymous1234,
Yep, this is correct!
Claiming GST on car purchases works a little differently.
You're generally entitled to claim a GST credit, for the GST included in purchased of new car, provided you have a tax invoice, and you use a motor vehicle solely in carrying on your business and you're registered for GST.
If you only partially use the vehicle for business purposes, you'll only be able to claim a percentage.
If you purchase a car for more than the car limit, the maximum amount of GST credits you can claim is one-eleventh of that limit.
when you purchase a luxury car, you may be charged a luxury car tax, you can't claim a credit for any luxury car tax that you pay when you purchase your luxury car.
Checkout the info we have on purchasing a motor vehicle.
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