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James Millar
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Rivelo, post: 182425 wrote:
Hi All,

I apologise if this has been answered elsewhere, my search thus far has not revealed it to me!

I am in the early stages of a startup venture. I decided to register my company for GST from day zero and as such I have incurred expenditure and have not undertaken any revenue generating activities. The ATO has kindly provided me with my first BAS to complete…

My understanding is that the GST component of expenses incurred prior to producing revenue can be claimed as a setup cost. For now do I complete a “Nil Activity” statement and delay claiming those GST costs until I have produced revenue, or do I claim them on my first Business Activity Statement?

Further, am I right in placing the GST component of those setup costs as “Capital Purchases” at G10, or would they go elsewhere?

Thanks in advance for lending me your knowledge.


Some may be on trading (income) account and some may be on capital account (certainly those more “setup” orientated”). Split between the two as best you can but given it has no effect on the overall BAS result there is no need to stress too much about it. Yes claim in first BAS and make sure you have all tax invoices. The ATO regularly review BAS refunds in the first few quarters of registration as part of their anti fraud process. Typically they will ask for the top 10 tax invoices.

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