Is there a way to specify when I am not able to fully claim a GST credit/rebate. Depending on the service, I may for example, only be able to claim 75% of the GST amount as a GST rebate. These are know as Reduced Input Tax Credits and are quite prevalent in the financial service industry.
How many transactions would be subject to this reduced GST rate? If not too many, you can simply split transaction where only 75% of the amount would be allocated to GST code.
The GST rate isn’t reduced as I still have to pay the full 10%, its that I can only get a tax credit/claim for GST paid on the services/product, at a rate of 75% or 55% of the GST cost incurred (the rate depends on the service/product purchased).
Yeah that’s right. If you can claim only 75% or 55%, you need to split those transactions as shown above.
That’s why I was wondering how many transactions would be applicable to this splitting as with too many transactions, this method would be way too tedious but with a few it’s workable.
Thanks. That works, but it may prove a bit of a pain down the track as transaction volumes increase.
I guess I play it by ear for now.