THE Australian Taxation Office has shown a flexible and businesslike approach in allowing GST input tax credits on car running costs.
The GST legislation allows the Tax Commissioner to issue a determination permitting the use of monthly credit card statements, rather than numerous individual invoices, when claiming GST input tax credits.
Until now, the ruling on point, GSTR 2000/26, limited this record keeping concession to corporate credit cards.
Paul Hockridge, tax spokesman for CPA Australia, said that this left many people who did not want the liability or cost associated with corporate credit cards in a position where the cost of handling numerous small invoices exceeded the input tax credit.
“On $30 spent in petrol the input tax credit is only $2.72,” Mr Hockridge said.
“You just can’t process individual invoices when the tax credit is this small.
“To its credit, the Tax Office has now advised CPA Australia that it will also issue determinations for personal credit cards, provided that the monthly statement includes the same information as a corporate credit card statement would, and the appropriate controls are in place.
“Now that the Tax Office has shown that it can be fair and reasonable, it is up to the credit card providers to supply this information without imposing exorbitant charges.”
