Applying a GST input tax credit to a sales invoice? Please help!

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Posted on by SSC

Scenario to outline issue:

1. We trade in a used car for 22,000AUD but can not claim the 2,000AUD GST until it is sold. So we enter a purchase with no GST -> this is fine

2. However when we sell this car we need to capture the GST credit that we are now able to claim as it is sold. So for example, we sell it for 33,000, we will collect 3,000 GST but are now able to claim the 2,000AUD from when we bought it.

The issue is that within the sales invoice we are not able to create a line item / credit that will capture this. We need to see a sales invoice for 33,000 total, with a tax liability of only 1,000 (net of 3,000 (gst collected) - 2,0000 (tax credit now claimable).

If anyone can offer any advice to resolve this specific scenario it would be much appreciated!

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