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  • #984156
    Anthony_83
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    Hey guys,

    I apologise if this has been asked before but I did a search and couldn’t find anything.

    My questions is..

    Since I am now registered for GST and will have to lodge a BAS statement, if I use my business credit card for all of my purchases, When do I claim the GST credits & expenses? Do I only claim it once the credit card has been paid or does it go by the date of purchase?

    for example, I purchase $1000 worth of stock, a week before I have to lodge a BAS statement. I wont be paying the credit card til after the BAS has been lodged. Do I claim those expenses & GST credits in that quarter or the next?

    #1146194
    Past-Member
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    1. I treat the purchases as immediate and enter them that way in my accounts because they have been ‘paid for’ by credit card. Then I do a monthly transfer from bank to credit card. The transfer is not claimable because I have already claimed all the items ie I have already accounted the purchases and any applicable fees. Hope that helps.

    2. You do your BAS every 3 months or yearly. You should have paperwork sent to you by the ATO by mail or email if you are registered for GST. Your accounting system should have a method of helping you to prepare for it. eg Xero, MYOB etc. I am registered as ‘cash basis’ so everything I have paid for (incl. credit card) is part of the accountability to the end of the reporting period.

    #1146195
    Jason@Plumsale
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    Paying by credit card is no different to paying by cash. The amount you report in your BAS is the amount of GST you paid during the period that you are reporting for. Transfering money between your own accounts does not affect taxation in any way.

    #1146196
    Anthony_83
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    fantastic, thankyou very much for the replies guys. I have only just registered for GST this financial year so have not received anything in the mail just yet. I use MYOB Justinvoices which is a watered down version that gives me the very basic functions I need for now. the ability to invoice/quote, GST collected etc

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