Hi, I'm setting up an online computer store and am confused about the tax side of things, if i buy a product for example, for $600 inc GST, then sell it on my site for $700 inc GST, Can I claim GST credit on the GST paid to the supplier? Or are you not able to claim GST credit for this? Thanks,
Jamil

Hi Jamil

You will be able to claim the GST credits for the GST paid on Purchase of Computer.

Using your numbers:
Sale of Product $700 (including GST of $63.64)
Purchase of Product $600 (including GST of $54.54)
Net GST you will have to pay $9.10 (i.e. $63.64 - $54.54)

Regards

Suresh

Hi Jamil,

You can claim a credit for any GST paid when you purchase goods and conversley you collect a gst when you sell goods. This is reconciled and paid on a quarterly basis if yout turnover is 75k+. If sub 75k its done annually when you do your tax.

Disclaimer - Im not an accountant so please check my opinion with your accountant..