When Can Doctors Claim GST Credits?

Running a medical practice has a lot in common with operating other businesses. For example, you have to hire a staff and prepare their payroll. You also have to deal with overhead costs, such as office space rental, utility bills, inventory supply costs, and the like.
Of course, one can’t forget about taxes, which all doctors are obligated to pay. Fortunately, they can claim goods and sales tax (GST) credits when they purchase items that will be used in the conduct of their business. The following conditions must be met though:

You Must Be Registered
You can’t claim GST credits if you are not GST-registered. The Australian Tax Office (ATO) has made this easier though; aside from the standard pen-and-paper method, you can now also register online, over the phone, or through a registered agent.

Purchase Price is GST Inclusive
If the item you purchased already includes GST in its price, you can claim the GST as a credit. Note, however, that you need a tax invoice as proof of this, and the invoice must explicitly state that the price is GST inclusive. Fortunately, suppliers are required to provide tax invoices for most purchases worth $82.50 and above.

You’re Paying for It

You can’t claim GST credits for something you didn’t buy. For example, you can’t claim a credit for a PC someone else bought and gifted to you even (though it will be used as an office computer).

This entry was posted on Friday, 23 May 2014 and is filed under ,,. You can follow any responses to this entry through the RSS 2.0. You can leave a response.

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