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Claiming GST on new vehicle

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I am purchasing a new vehicle.

I am registered for Gst and have just started to trade again but will show no income for this financial year.

 

Can I still claim the gat content on the vehicle if I have minimal income claimed for last month of financial year.

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Hi @Tbowman,

Thanks for writing to us! If you're registered for GST, and you're purchasing items for your business, then you may be eligible to claim back the GST credits on your purchase - and it doesn't matter how much your business earns in the financial year.

Generally speaking, you can claim GST credits if you meet the following criteria:

  • you intend to use your purchase solely or partly in carrying on your business and the purchase does not relate to making input-taxed supplies
  • the purchase price included GST
  • you provide, or are liable to provide, payment for the item you purchased
  • you have a tax invoice from your supplier (for purchases more than $82.50).

You can find more information on claiming GST credits on our website.

In some circumstances, you may be able to claim a tax deduction for assets under $20,000 that you purchase for your business. This is sometimes called 'instant asset write-off', and there are some criteria you'll need to meet to be eligible. It's important to note, though, that these deductions aren't 'cash back' - deductions can only reduce the tax you have to pay to zero. If you're claiming deductions that are worth more than the tax you need to pay, you won't receive the difference as a refund.

It's also important to note that you can't claim a deduction for the GST component of a purchase if you can claim it as a GST credit on your business activity statement. Visit our guide to income and deductions for business to learn more.

Hope that helps! Thanks, AmandaE

1 REPLY 1

Best answer

ATO Certified

Devotee

Replies 0

Hi @Tbowman,

Thanks for writing to us! If you're registered for GST, and you're purchasing items for your business, then you may be eligible to claim back the GST credits on your purchase - and it doesn't matter how much your business earns in the financial year.

Generally speaking, you can claim GST credits if you meet the following criteria:

  • you intend to use your purchase solely or partly in carrying on your business and the purchase does not relate to making input-taxed supplies
  • the purchase price included GST
  • you provide, or are liable to provide, payment for the item you purchased
  • you have a tax invoice from your supplier (for purchases more than $82.50).

You can find more information on claiming GST credits on our website.

In some circumstances, you may be able to claim a tax deduction for assets under $20,000 that you purchase for your business. This is sometimes called 'instant asset write-off', and there are some criteria you'll need to meet to be eligible. It's important to note, though, that these deductions aren't 'cash back' - deductions can only reduce the tax you have to pay to zero. If you're claiming deductions that are worth more than the tax you need to pay, you won't receive the difference as a refund.

It's also important to note that you can't claim a deduction for the GST component of a purchase if you can claim it as a GST credit on your business activity statement. Visit our guide to income and deductions for business to learn more.

Hope that helps! Thanks, AmandaE

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