Here are some important things to keep in mind when claiming GST on your motor vehicle registration:
- If you are unsure if you paid GST on your car registration, you should check with your local roads and motor vehicle authority. Or, you can simply check the tax invoice you should have received when you paid the fees.
- Car registration varies depending on what state you are living in. For example, in Victoria, vehicle registration is broken up into three parts: Registration Fee, TAC Charge and Duty Insurance. Please note, generally only the TAC charge includes GST, whereas the registration fee and duty insurance do not.
- It is important that you have a tax invoice or any other legitimate proof that validates your vehicle expenses.
- If you paid GST on your vehicle registration, only the part on which GST was charged can be included in the BAS. Your registration invoice is made up of various different fees (for example TAC fee, registration fee and duty insurance). The break down of fees for any vehicle registration varies from state to state so you will need to check the breakdown in your registration invoice. You can only claim the GST on the part of the fees which contain GST.
For example, if your total car registration expense was $820, your TAC fee was $220 (including $20 GST), your registration fee was $500 (no GST included) and your duty insurance was $300 (no GST included), then only the TAC fee can be added to your car expenses for BAS purposes as it is the only fee on the invoice which includes GST.