If you purchase goods or services that you intend to use for both your business and privately, you will need to apportion your claim. You can only claim a GST credit for the portion that relates to your business use.
Let’s look at some examples.
Haruto is a florist and runs his own business in the city. He purchases a laptop for $1,200 which includes $109.90 for GST. Haruto has a separate computer set-up at home which he keeps for personal use and his kids use for their schoolwork. Haruto plans to use the new laptop solely for his business, which is 100% of the time. In this case, Haruto can claim the full GST credit of $109.90.
Aisha is a full-time university student and hosts a successful video series on social media platforms, Instagram and YouTube. She has voluntarily registered for GST.
Aisha has a laptop which needs upgrading, so she purchases a new laptop for $1,200 which includes $109.90 for GST. Aisha plans on using her new laptop for university assignments, emails, and her work as a social media influencer. Aisha estimates that 80% of the time she will use the laptop for personal/private tasks (including uni) and 20% of the time for her video series. In this instance Aisha can only claim 20% of the GST amount included in the price of the laptop, which is $21.98.
Goods and services tax (GST)
Steps | Progress | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Introduction to the Goods and services tax (GST) |
4 mins | |||||||||||||
Registering for GST |
4 mins | |||||||||||||
Protecting yourself and your business |
7 mins | |||||||||||||
Collecting GST on sales |
6 mins | |||||||||||||
Claiming GST on purchases (GST credits) |
8 mins | |||||||||||||
Claiming GST on imports and exports |
3 mins | |||||||||||||
|
||||||||||||||
Record keeping and GST |
5 mins | |||||||||||||
Accounting for GST |
4 mins | |||||||||||||
BAS lodgment and payment options |
6 mins | |||||||||||||
Completing your BAS |
5 mins | |||||||||||||
Managing errors and making adjustments |
5 mins | |||||||||||||
Getting support when you need it |
2 mins | |||||||||||||
Related courses |
1 mins | |||||||||||||
Course Feedback |
||||||||||||||