Good reminder from the ATO to look at the Tax Invoices you receive from your suppliers (& also the ones you issue!).

The problem for us is if we receive an incorrect invoice from a supplier (they said they were GST reg’d but weren’t, invoices over $1k failing requirements, etc) – and in all cases if the ATO does not accept the invoice, it is your business that has to pay back the GST (& then seek reimbursement from the supplier if you can).

Did you know you can only claim a GST credit for a purchase if the seller is registered for GST?

This is especially important to remember when purchasing goods or services through online trading or auction sites. Some of these sellers may not be registered for GST.

You can check your suppliers’ GST registration on the ABN Lookup tool or the ATO app.

If you are entitled to claim a GST credit and your supplier is registered for GST, you need to keep a tax invoice for items more than $82.50 (including GST).

For purchases under $1,000 the invoice should include enough information to clearly determine the:

  • seller’s identity
  • seller’s ABN
  • date of invoice
  • description of the items sold, including the quantity and the price
  • GST amount payable (if any) – it can be shown separately or as a ‘total price includes GST’ if the GST is exactly one-eleventh of the total price
  • GST-free sales
  • document is intended as a tax invoice (not a delivery receipt or purchase order).

There are additional tax invoice requirements for purchases over $1,000.

Remember, registered tax agents and BAS agents can help you with tax advice.

Find here the link to the ABN lookup website to check if you have received a valid ABN.