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  • #975973
    Mr Antiques
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    Hi

    Im in the process of trying to start up my own bussiness of buying old and antique furniture to restore then re sell. I would like to know how to prove what you have paid for an item when purchased from a site such as gumtree or from a market etc when no reciept is provided?

    Thanks in advance

    #1077828
    MyGreatIdea
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    My first thought was to issue a Recipient Created Invoice. On checking the ATO website I see you can only do that if both parties are registered for GST (and I’m guessing someone selling at a local market wouldn’t be :D)

    My suggestion would be to keep a record (just on a spreadsheet) of the date, item, its condition, where you purchased it, and cost.

    And wait for one of our tax experts to give you a clear answer.

    Wendy :)

    #1077829
    Anonymous
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    A couple of ideas come to mind for me…

    1) For Gumtree type items, Print the page the item is on with price if no price ask questions and keep them to reference it against the item (making sure to reveal phone number, email or what ever contact info is available b4 printing).
    2) You should still be able to request a receipt from the stall holder (the problem is remembering to ask). With such details as Name of person (printed), Date, Amount, Contact Info (if you can), and more importantly a Signature. There is an allowance for items under certain value to Not require a receipt but I wouldnt take the risk with an antique item.
    3) Carry a plain/bland Invoice/Receipt carbon copy book (that you can aquire from news-agents, and put the appropriate details in it.

    Note: From a Market ask stall holder if they are trading as a business and do they have an ABN, add this to the receipt.

    hope that helps

    #1077830
    MattR
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    Just record in your Book, and offer a receipt yourself, it’s better than nothing.

    Also remember if you are going to be registered for GST, there are special rules that can help you when buying from non-registered (GST) sellers.

    http://www.ato.gov.au/content/downloads/bus42955nat10817082011.pdf

    #1077831
    Skyblues
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    MattR, post: 98048 wrote:
    Just record in your Book, and offer a receipt yourself, it’s better than nothing.

    Also remember if you are going to be registered for GST, there are special rules that can help you when buying from non-registered (GST) sellers.

    http://www.ato.gov.au/content/downloads/bus42955nat10817082011.pdf

    I am interested in this too as my post about buying from overseas tailors who do not have ABN did not attract any response, could you please see my thread and offer suggestions in an overseas context as well – thanks
    http://www.flyingsolo.com.au/forums/starting-business/16833-importing-overseas-individuals-without-abn-relatives-local-agents.html#post98058

    #1077832
    MattR
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    The onus is on you to substantiate – under tax law the burden is on you to prove your right.

    ATO Practice Statement on substantiation
    http://law.ato.gov.au/atolaw/view.htm?docid=PSR/PS20057/NAT/ATO/00001

    ATO doc on the withholding obligations for payments to businesses.
    http://www.ato.gov.au/content/downloads/nat3346.pdf

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