How do GST-registered NZ sole traders claim expenses differently?

If you are GST-registered, the way you record and claim expenses differs from non-GST-registered businesses: **For income tax (IR3):** You claim the GST-exclusive amount of your expenses (i.e., the price before GST). The GST component is claimed separately through your GST return. **For GST (GST returns):** You claim back the GST (input tax) paid on business expenses. For example, if you pay NZ$115 for a business expense (including NZ$15 GST), you: - Claim NZ$100 as a business expense on your income tax return - Claim NZ$15 as input tax credit on your GST return **Tax invoices:** To claim GST back, you need a valid tax invoice for purchases of NZ$50 or more. A tax invoice must show: the supplier's name, the supplier's GST number, the date, a description of the supply, and the GST-exclusive amount, GST amount, and GST-inclusive total. **Purchases under NZ$50:** For purchases under NZ$50, a receipt (not necessarily a full tax invoice) is sufficient to support a GST claim.

• GST-registered: claim GST-exclusive expenses on income tax return
• Claim GST back (input tax) on GST return
• Need valid tax invoice for purchases of NZ$50+
• Tax invoice must show supplier's GST number
• Purchases under NZ$50: receipt sufficient