Women with baskets of tomatoes in greenhouse

Can you claim GST Credits?

/by

To claim GST credits on your purchases, you must be able to demonstrate you’re in business through activities such as:

  • aiming to make a profit
  • keeping records and account books
  • making commercial sales of a product or service
  • marketing and advertising to attract clients
  • drafting a business plan.

It’s more likely you’re not in business and your activities are a hobby if they’re:

  • not aimed at making a profit
  • not carried out in a businesslike manner
  • irregular
  • done mostly for your own enjoyment and satisfaction.

If your activities are a hobby rather than a business you can’t claim GST credits on purchases associated with your hobby. You should consider if you have to cancel your ABN and GST registrations. You may also need to amend past activity statements if you have claimed GST credits for purchases associated with your hobby.

Call STS Accounting Group today to find out more. 

 

(Article Source ATO Small Business Newsroom )