Recently someone asked us "Hey Bosco, what's an input tax credit?". We said "great question, here's the answer...". Then it got us to thinking – JARGON! There's loads of phrases accountants understand and can sometimes take for granted that you don't. Input tax credits are a perfect example.
If you run a small business then understanding input tax credits is important. So (drum roll)... an input tax credit is also known as a GST credit. Basically, it's a credit you can claim for the amount of GST included in the price of goods or services you buy to use in your business.
These are a few useful things to know about input tax credits:
We understand that the only silly question is the one you don't ask! So (just like input tax credits), if you have any burning questions, no matter how silly you think they might be, get in touch. We'd love to hear from you to help improve your business.