Can GST be claimed on second-hand assets?

Yes, the general rule is that you can claim back the GST on your purchase.

If you don’t have an invoice, you’ll still need to record the following:

  • name and address of the supplier
  • date of the purchase
  • description of the goods
  • quantity of goods
  • price paid.
Exception

The only exception to this general rule is if you’re buying from someone associated to you. So if you buy a car from your brother and he’s not GST registered then you can only claim the lowest of:

  • purchase price, or
  • current market value, or
  • GST component (if any) of the original cost of the goods to the supplier.

This is to prevent any tax shenanigans between mates or family!

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