What is Input tax Credits

Input tax Credits (Definition)

Input tax credits, also known as GST credits, are a form of credit that a business may claim for the goods and services tax (GST) included in the price of goods and services that a business may purchase. Used to reduce a business’s GST liability, a business must first be registered for GST to make a claim. There are strict rules that govern when input tax credits may or may not be claimed, as well as time limits applicable to when a claim may be submitted. While a tax invoice will typically specify the GST amount, a business is also able to work out the GST amount and the applicable GST credit themselves.


End of financial year checklist

The end of the financial year is an important time of the year when businesses need to ensure they have submitted all necessary reporting requirements to the ATO. Use our end of financial year checklist to stay organised and prepared for tax time.

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