GST questions solved
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Tuesday, 17 October, 2000 - 21:00
I account for GST on a cash basis. I received some goods and services pre-1 July 2000, but did not pay for them until after 1 July? Should I include these payments in my Business Activity Statement?
The preferred view of the Tax Office is that if the goods were delivered prior to 1 July, or the services were performed prior to 1 July, then the acquisition is deemed to have taken place prior to 1 July 2000. This is the case, regardless of when you actually make payment to the supplier.
Accordingly, you should not include in your BAS any payments that you made on or after 1 July 2000 in relation to such acquisitions.
How do I complete my BAS in order to claim input tax credits in respect of periodic supplies that I purchased pre-1 July (eg. Insurance premiums)?
Where you made a payment pre-July 1 in respect of an acquisition that spans July 1, you will be entitled to claim input tax credits in your first GST return.
In order to claim your input tax credits, you should include at G10 or G11 of your BAS, the portion of the purchase price that relates to the post-30 June component of the supply. For example, if the cost of a 12-month maintenance contract was $1,050 (paid for up front) and half the supply took place prior to 1 July, and half took place on or after 1 July, then you would account for $550 in G11 in your first BAS.
However, you could only include the figure in G11 and claim an input tax credit if you held a valid tax invoice (or special transitional invoice) for the acquisition. If the tax invoice does not separately express the price of the taxable supply, but only states the GST component of the total price, then you should multiply the GST component by 11 and insert this figure in either G10 or G11, as appropriate.
The preferred view of the Tax Office is that if the goods were delivered prior to 1 July, or the services were performed prior to 1 July, then the acquisition is deemed to have taken place prior to 1 July 2000. This is the case, regardless of when you actually make payment to the supplier.
Accordingly, you should not include in your BAS any payments that you made on or after 1 July 2000 in relation to such acquisitions.
How do I complete my BAS in order to claim input tax credits in respect of periodic supplies that I purchased pre-1 July (eg. Insurance premiums)?
Where you made a payment pre-July 1 in respect of an acquisition that spans July 1, you will be entitled to claim input tax credits in your first GST return.
In order to claim your input tax credits, you should include at G10 or G11 of your BAS, the portion of the purchase price that relates to the post-30 June component of the supply. For example, if the cost of a 12-month maintenance contract was $1,050 (paid for up front) and half the supply took place prior to 1 July, and half took place on or after 1 July, then you would account for $550 in G11 in your first BAS.
However, you could only include the figure in G11 and claim an input tax credit if you held a valid tax invoice (or special transitional invoice) for the acquisition. If the tax invoice does not separately express the price of the taxable supply, but only states the GST component of the total price, then you should multiply the GST component by 11 and insert this figure in either G10 or G11, as appropriate.