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My client registered his new ABN and GST registration over 12 months ago. He has now been purchasing items and paying contractors to setup a restaurant. He says about $50,000.
Is the GST claimed on these pre-established costs and a tax deduction before trading commences when the shop wont be ready to start trading until November?
Thanks Sally.
Hi @Sally2017,
Thanks for writing to us!
If your clients are registered for GST, and they have started purchasing items for their business, they may be eligible to claim back the GST credits on these purchases.
Generally speaking, you can claim GST credits when the following criteria is met:
You can find more information on claiming GST credits on our website.
To claim GST on pre-establishment costs when setting up a company the following seven criteria must apply:
You can find more information on pre-establishment costs relating to a company here.
If you have further questions on claiming GST you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.
Hope this helps.
Hi @Sally2017,
Thanks for writing to us!
If your clients are registered for GST, and they have started purchasing items for their business, they may be eligible to claim back the GST credits on these purchases.
Generally speaking, you can claim GST credits when the following criteria is met:
You can find more information on claiming GST credits on our website.
To claim GST on pre-establishment costs when setting up a company the following seven criteria must apply:
You can find more information on pre-establishment costs relating to a company here.
If you have further questions on claiming GST you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator.
Hope this helps.
Thanks for the replies. I saw these answers on the ATO website but thought they werent clear enough. Thats why I wrote the question here and Ive just been told the same as the website.
Point 6 states theres no GST credit if the purchase is from the owner so what does Point 7 mean?
"you must not be entitled to claim a GST credit for the purchase"?
Does this mean the individual cannot claim it back just the company?