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  • #975576
    Skythelimit
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    Ok,

    I started a business as a sole trader and during that time paid a deposit on a piece of capital equiptment before changing the entity to a partnership and paying off the bulk of the equiptment fully under the partnership.

    Is is going to be a problem claiming back the gst on this equipment? If so Can I just back date the partnership gst and have the abn changed on the deposit invoice?

    Thanks,
    Skythelimit.

    #1075244
    MattR
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    If you haven’t done the BAS for that period, you could just claim the GST in the partnership.

    Otherwise;
    1) Claim the GST credit as sole trader then sell it to the partnership for cost, charging GST – therefore neutral in GST terms for sole trader
    2) In the partnership claim the GST on purchase from sole trader.

    OR, far more complex, utilise the GST Going Concern Concession.

    #1075245
    Skythelimit
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    Thanks MattR,

    I haven’t done the BAS for that period yet. So it is not a problem that the deposit invoice has the abn for sole trader?

    #1075246
    MattR
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    I am sure you will find the bit of paper that says that you (the sole trader) was acting on behalf of the partnership and that the item in question was for the partnership.

    Seriously, if it’s a small amount I’d just do it through the partnership and note that you did it as a partner. If it’s a large amount then I’d do it the other way. as a new business may get a please explain from the ATO if its getting a large GST refund – and that way when you present your tax invoices, you’re covered.

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