Tax invoices and record keeping for GST credits
Claiming GST credits can seem confusing, but there are a couple of simple things that can help you avoid some common mistakes.
1. Make sure you hold valid tax invoices for purchases above $82.50 (including GST)
For a tax invoice to be valid it needs to include the:
words 'tax invoice'
seller's name and ABN
issue date of the invoice
description of items sold – including the quantity and price
GST amount included in the price
extent to which each sale includes GST, and
for sales above $1,000, purchaser's name or ABN.
2. Keep good records
Good record-keeping practices can help you get your refund faster if we need to check your claim. Aside from obtaining valid tax invoices for GST purchases, some tips for keeping good records are to:
keep accurate records of all sales and purchases
store your records electronically
ensure your records contain enough information to calculate and support the amounts on your BAS, and
retain a copy of all tax invoices and other GST records for 5 years.
You can evaluate your current record-keeping practices by using our record-keeping evaluation tool.
Please contact us on (08) 9459 7155 if you seek further asistance.
Reproduced with the permission of the Australian Tax Office. This article was originally published at https://www.ato.gov.au/Newsroom/smallbusiness/GST-and-excise/Tax-invoices-and-record-keeping-for-GST-credits/
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