These costs may include set-up fees, business registration costs, trading stock and other items such as business premises.
For the company to be eligible to claim credits on such costs, it must meet the following requirements:
- The purchase must be for the purpose of bringing the company into existence
or for carrying on a business after it comes into existence
- The purchase must not be used to make input taxed sales or for private
- The company must come into existence and be registered for GST within six
months after the purchase;
- The purchaser must become a member, officer or employee of the
- The company must fully reimburse the purchaser for the cost of the
- The company must not be entitled to a GST credit for the purchase, if it
subsequently acquires the thing from the purchaser; and
- The purchaser must not be able to claim a GST credit for the purchase.
- The purchase must be for the purpose of bringing the company into existence or for carrying on a business after it comes into existence
For more information on special rules for claiming GST credits, click here.