Did you know that you can report and pay GST amounts and claim GST credits with BAS lodgment or annual GST return lodgment? You need to meet a few requirements to be eligible to claim GST credits. Despite this, you may also be eligible to register for fuel tax credits and for this, you have to register for GST. In today’s blog, we’ll discuss when you can claim GST credits and fuel tax credits.

Understanding Fuel Tax Credits

You may qualify to claim credits for the fuel tax (excise or customs duty) included in the cost of fuel used for the operations of your business. However, certain fuels and activities do not qualify for fuel tax credits, including:

• Fuel used in light vehicles with a gross vehicle mass (GVM) of 4.5 tonnes or less, operating on public roads
• Aviation fuels
• Alternative fuels

For detailed information, you can also consult an experienced tax accountant near your area by searching ‘tax accountant near me’. To ensure accurate fuel tax credit calculations and support your claims, you must maintain complete and accurate records. Start keeping records as soon as you start your business activities to ensure proper calculation and claiming. Your records must:

• Show the amount of fuel purchased and used in your business, along with any related calculations
• Be kept in writing, either electronically or on paper
• Be in English or easily translatable into English
• Be retained for five years, though some records may need to be kept longer.

If you claim less than $10,000 in fuel tax credits annually, you can use the simplified approach for record-keeping and calculating your claim. Maintaining accurate records ensures you can claim all the fuel tax credits you’re entitled to. Failing to support your claims with sufficient records may require you to repay all or part of the fuel tax credits you received and could result in penalties and interest charges. For accurate record-keeping, you can choose small business bookkeeping services.

Understanding GST Credits

You can claim a credit for the GST included in the cost of goods and services bought for your business. This is known as a GST credit (or an input tax credit – a credit for the tax included in the cost of your business inputs). You can claim GST credits if:

• You are likely to use the purchase, either fully or partially, for your business, and it is not related to making input-taxed supplies
• The purchase price includes GST
• You have made or are required to make payment for the item
• You hold a tax invoice from your supplier (for purchases over A$82.50).

When claiming GST credits, ensure that your suppliers are registered for GST. The ABN Lookup website allows you to verify an entity’s GST registration status. Note that there is a 4-year time limit for claiming GST credits.

How Long Do You have to Claim GST Credits and Fuel Tax Credits?

You are liable to claim your GST and fuel tax credits within 4 years from the due date of the first BAS in which you could have claimed the relevant credit. If you don’t claim within this time period, you will no longer be able to claim the credits. The credits must be included in your assessment within the 4-year time limit. Simply filing an amendment to your original assessment or requesting a private ruling doesn’t constitute a claim for fuel tax and GST credits. There are many options for claiming credits. You can:

• Claim the credits yourself by adding them to your next BAS, as long as that BAS is lodged within the 4-year credit time limit.
• Submit a Revised BAS (RBAS) for the original period using Online Services within the 4-year credit time period. However, this is considered the same as an amendment request, and the credits will not be included until the RBAS is processed.
• Lodge a valid objection within the 4-year time limit to preserve your entitlement to the credits.

It is recommended that you consider your options early and avoid leaving your credit claims until the last minute to prevent the credits from expiring. Be sure to keep accurate records to support your claims and seek assistance from a registered tax accountant. Being one of the best accounting firms in Melbourne, we ensure to help businesses save more by helping them claim GST and fuel tax credits.

Conclusion

It’s important to act within the 4-year time limit to ensure you can claim your GST and fuel tax credits. Keeping accurate records and seeking timely advice from Reliable Melbourne Accountants will help you avoid missing out on your entitlements.