# ATO: Wondering what an input tax credit is?



## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office's Small Business Newsroom:

*Wondering what an input tax credit is?*










*3 May 2019*

An input tax credit is also known as a GST credit.

It's a credit you can claim for the amount of GST included in the price of goods or services (the inputs) you buy for use in your business.

Tips:

You can only claim an input tax credit if you are registered for GST.
Not everything will have GST included in the price, for example if you buy fresh vegetables to use in your restaurant, these would be GST-free sales to you.
You can find the amount of GST on the tax invoices issued to you.
If you buy an item for both business and private purposes, you can only claim an input tax credit for the business portion.
You can't claim an input tax credit on items you buy to make input-tax sales. For example if you rent out residential premises you cannot claim credits on repairs and maintenance.
You need to keep your tax invoice for purchases that cost more than $82.50 (including GST).
*Next step:*

Check ABN LookupExternal Link to see if your suppliers are registered for GST.
*Find out about:*

Claiming GST credits
When you can claim a GST credit
When you cannot claim a GST credit
Input-taxed sales
(https://www.ato.gov.au/Newsroom/sma...-what-an-input-tax-credit-is-/?sbnews20190529)


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