Is your business operating in the food industry? It is important that you work with a Melbourne accountant or a small accounting firm in Melbourne who has proven expertise and experience in this particular field.
Like other industries, there are different rules that apply on food products. With the help of your Melbourne accountant or a small accounting firm in Melbourne, you will be able to determine whether the food you sell is GST-free or taxable. In addition, it is also critically important that food and non-food items are properly classified.
GST is generally applied at specific stages in the food supply chain and it’s applied when item is either:
If your business is GST-registered, you can coordinate with your Melbourne accountant or a small accounting firm in Melbourne to claim the GST credits for any GST payments for the food items you have purchased.
It is also important to note that you will not be able to claim GST credits for the food that is supplied as “entertainment expense” that is also non-deductible for income tax.