Every year, around 3,000 GST-registered businesses are selected for audit and the most common mistakes discovered are incorrect input tax claims. On average, more than $18,000 in GST and penalties are recovered yearly from each business due to errors in input tax claims alone.
A good understanding of input tax recovery rules is critical in delivering optimal GST recovery/claims whilst mitigating the risk of penalties. With a clear understanding of these rules, you will know how to examine the conditions that determine when GST can be recovered and how to correctly post the accounting entries for purchases by applying the correct tax treatment for each transaction.
This webinar is designed specifically to give Accounting and Tax Professionals more clarity to the key areas of concern on the recovery of GST on purchases.
A Highlight of Key Areas:
The Fundamental Building Blocks
- Mechanics of GST
- Basic GST concepts
- Different types of supplies / purchases
- Standard-rated, zero-rated and exempt supplies
Input Tax Recovery Rules
- Purchase GST that cannot be claimed
When can GST be Claimed
- Time of claiming: Claiming input tax in the right accounting period
- Evidence needed to claim GST
- Tax invoice
- Simplified invoice
- Import permit
- Purchases by employees
Determining the Amount of GST to Claim
- De-minimis rule
- Attribution / apportionment
- The impact of partial exemption
- Fringe benefits
- Business entertainment
Common Errors on Input Tax Claims
- Understanding the common errors, and avoid making them in your claims
Recent Updates and Practical Issues to consider during the COVID-19 period
Practical examples and cases will be used to facilitate learning and understanding for the various sections.