Home Forums Money matters What’s input tax credit?

  • This topic is empty.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • #993121
    Smallybigs
    Member
    • Total posts: 6

    Hi all.

    I understand that it’s to do with GST but what I really want to know is when you claim a tax credit, what does it exactly mean. Am I able to convert this into cash or does it offset some other taxes? I looked on the ATO website but it didnt explain it well.

    #1189820
    NickKaro
    Member
    • Total posts: 226

    Input tax credits arise from GST paid on expenses and can be used to offset GST received (i.e. GST on income) or can be refunded if GST paid is greater than GST received.

    The above is on the basis that you are registered for GST.

    #1189821
    Smallybigs
    Member
    • Total posts: 6

    Thank you Nick. I understand it now.

Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.