Hi, I have a client who is owned by a US Company. The US company has paid for some expenses on behalf of the AU company. The AU company has a receivable / payable in their balance sheet for these type of payments. Can the AU company claim the GST on these expenses? Thanks Sam
Hi @Sam1012
The company that paid the expenses can claim the GST credits. In your situation, the US company paid the expenses and would normally claim the GST on their activity statement.
Since the US company isn't registered for GST in Australia, the AU company can't claim GST credits on expenses they didn't pay for. The AU company would need to actually pay the expenses themselves to be eligible for GST credits.
Hi @Sam1012
The company that paid the expenses can claim the GST credits. In your situation, the US company paid the expenses and would normally claim the GST on their activity statement.
Since the US company isn't registered for GST in Australia, the AU company can't claim GST credits on expenses they didn't pay for. The AU company would need to actually pay the expenses themselves to be eligible for GST credits.
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