GST Output Tax: Non-business or private use of business assets

Key requirements

Where business assets are used privately or outside the owner’s business for free, deemed GST is based on the full cost of providing that use if purchase or import input tax was allowed. A computer taken home privately or a related company’s free use of a printer can qualify. If no input tax was claimed, including a company car with blocked purchase tax, the free use does not trigger that deemed tax. The owner may bear GST, in which case the user cannot claim it, or recover it from a registered user. Since March 2013, the latter can receive the specified tax certificate and claim subject to normal conditions. Do not issue a normal tax invoice for the deemed free use. Retain the cost allocation and distinguish it from an actual paid rental.