Running a
medical practice has a lot in common with operating other businesses. For
example, you have to hire a staff and prepare their payroll. You also have to
deal with overhead costs, such as office space rental, utility bills, inventory
supply costs, and the like.
Of
course, one can’t forget about taxes, which all doctors are obligated to pay.
Fortunately, they can claim goods and sales tax (GST) credits when they
purchase items that will be used in the conduct of their business. The
following conditions must be met though:
You Must
Be Registered
You can’t
claim GST credits if you are not GST-registered. The Australian Tax Office
(ATO) has made this easier though; aside from the standard pen-and-paper
method, you can now also register online, over the phone, or through a
registered agent.
Purchase
Price is GST Inclusive
If the item you purchased already includes GST in
its price, you can claim the GST as a credit. Note, however, that you need a
tax invoice as proof of this, and the invoice must explicitly state that the
price is GST inclusive. Fortunately, suppliers are required to provide tax
invoices for most purchases worth $82.50 and above.
You’re
Paying for It
You can’t claim GST credits for something you
didn’t buy. For example, you can’t claim a credit for a PC someone else bought
and gifted to you even (though it will be used as an office computer).
