Claiming GST Credits On Purchases Where The Supplier Is Not Registered For GST

Check the source invoice to see if it has GST or if it is a tax invoice. When in doubt, go to the ABN lookup page and type in the supplier’s ABN number or look up their business name to check.

Suppliers are required by law to provide you with an ABN when you purchase goods or services. If a supplier refuses to quote an ABN, you may need to withhold an amount of payment for that supply called “No ABN withholding”.

This amount is 46.5 percent of the total payment owed unless the following is provided:

1. An invoice or some other document is supplied with an ABN quoted

2. The ABN of the supplier’s agent is quoted

3. The supplier is not entitled to an ABN or required to as the payment is less than $75

To find out more about Xero and how it can help your business, contact Bottrell Business Consultants on (02) 4933 6888 or gavin@bottrellaccounting.com.au