Ideas Tax Knowledge Blog

GST Credits for the sole trader

Written by Ideas Group | Mar 31, 2020 12:49:45 AM

 

 

Question: A sole trader wants to claim GST credits for business lunches and also wants to claim GST on motor vehicle expenses using the cents per kilometer method. Can they do this?

Answer: No, they can't claim GST credits for business lunches because entertainment expenses are not eligible for GST credits. However, they can claim GST on motor vehicle expenses by proving the business use percentage of the vehicle through a logbook. Using the cents per kilometer method doesn't change this.

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