Tax receipt with no ABN... can I still claim it as an expense

[donkey]

I had a 'friend' do some work fixing the back deck on my I.P that was rotting. His labour totalled $525 and he issued a 'tax invoice / statement' (a generic one that you can buy at any newsagent) and put down 15 hours labour $500. He does not have an ABN and thus no GST on the receipt. Can I still deduct this as an expense on next years tax return?

He gave me some other receipts from the timber yard etc which are normal receipts. I presume these will be ok.

many thanks

 

[coastymike]

Well given he had no ABN then you obviously remitted 46.5% if prior to 1 July 2014 or 49% if after 1 July 2014 of the payment to the ATO as required. So claiming a deduction won't be a problem.

 

[Paul@PFI]

The withholding tax rule only applies to an entity that is obliged to withhold. Since you have no ABN I see no issue with withholding. Withholding doesn't apply other than within the world of ABN's and non-residents.

However.... If its reviewed it more likely your mate may be asked to explain where his income is than you being put on the rack.

The receipt show his name and address ? Date, the amount and what it was for.

 

[datto]

The way I see it, its tax deductible if the ATO accepts it as written evidence. If tax had to be decucted from that payment and remitted to the tax office, well that's a different matter.

ATO written evidence includes:

Written in Englosh
Name of the supplier
Amount of the expense
Nature of the goods or services
Date the expense was incurred
Date of the document.

 

[wylie]

Am I alone in not knowing the rules about receiving an invoice without an ABN and with no GST showing?

I wouldn't know what to look for and really look at the bottom line to see what I need to pay.

Most of the time the invoice is from a business and I know it does have GST because I notice it when I'm looking for the bottom line, but for smaller businesses with generic invoices, I wouldn't know I had to deduct tax. Where would I send it, on some sort of form???

To be honest, I've never thought about it.

 

[Paul@PFI]

tax invoice rules are on the Ato website. Tax invoices are a GST issue. A business issue. Not a issue for prop. investors.

 

[Scott No Mates]

tax invoice rules are on the Ato website. Tax invoices are a GST issue. A business issue. Not a issue for prop. investors.

Only if you are involved in resi property. It is applicable to any commercial investor registered for gst.

 

[HeadsOnBeds]

I've received some invoices where the tradie earns less then the $75k per annum income cut off to register for GST. How are they meant to be handled?

 

[D.T.]

If you buy something business related online, it's likely to come from another country and have no abn - what then?

 

[datto]

DT, tell them you're only sending half the money due to tax rules. Then wait for the goods to turn up lol.

Anyway, I think overseas purchases under $1K are GST free. Otherwise I'd imagine customs won't release the goods till its paid....then sold at auction.

 

[Scott No Mates]

I've received some invoices where the tradie earns less then the $75k per annum income cut off to register for GST. How are they meant to be handled?

Registration for GST is separate from getting an ABN.

 

[Nem]

If you are business and claiming GST paid vs GST collected then its important to check if your expense is with GST or without.

If expense is for individuals like us, its irrelevant GST or not when claiming towards your TAX