Here are common GST mistakes we see:
- Government fees
ASIC, business name registration, vehicle registration (remember CTP may have GST) - Food
Fresh fruit, vegetables and milk for the office - Banking
Bank fees are GST free; merchant/eftpos fees are subject to GST. Interest doesn’t attract GST either - Insurance
No GST on the stamp duty and fire levy component; also insurers pay the GST directly to the ATO for successful claims that involve a payout - Small Businesses
Remember some small suppliers or contractors may not be registered for GST - Entertainment
Where a business has elected the 50/50 split method for FBT, only 50% of credits can be claimed. Remember – travel is not entertainment, and all credits can be claimed - Travel
International airfares do not attract GST, as they are regarded as an export service - Private expenses (sole traders and partnerships)
When apportioning private and business use expenses, only claim GST on the business proportion - Government grants and awards
Most grants and awards are GST, but worth making sure
