Contrary to popular belief, not all GST input tax incurred can be claim. The following are the expenses that are specifically disallowed to be claimed as input tax:

  • Benefits provided to the family members or relatives of your staff;
  • Costs and running expenses incurred on private motor cars
  • Club subscription fees (including transfer fees) charged by sports and recreation clubs;
  • Medical expenses incurred for your staff unless they are obligatory under the Work Injury Compensation Act or under any collective agreement within the meaning of the Industrial Relations Act;
  • Medical and accident insurance premiums incurred for your staff unless the insurance or payment of compensation is obligatory under the Work Injury Compensation Act or under any collective agreement within the meaning of the Industrial Relations Act; and
  • Any transaction involving betting, sweepstakes, lotteries, fruit machines or games of chance.
These are some common errors committed by GST registered businesses.  If such errors are discovered by the tax authorities in the course of audit, this claims will be disallowed and penalties may be imposed.
Blocked GST input tax claims

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