Practical Checklist for Bookkeepers and Accountants for Claiming GST on Second-Hand Goods

1. Collect More Historical Purchase Information

Businesses may now have valid claims relating to secondhand goods acquired before GST registration.

Additional information to obtain

• Purchase date

• Purchase price

• Seller details (where available)

• Evidence that the item was acquired secondhand

• Documentation showing current business use

Example

When onboarding a newly GST-registered client, review assets purchased in the months or years before registration rather than only purchases made after registration.

2. Improve Fixed Asset Records

Accountants should ensure asset registers capture:

• Acquisition date

• Date GST registration commenced

• Percentage of taxable use

• Changes in taxable use over time

Example

A secondhand van purchased before registration may need separate tracking to support a later secondhand goods input tax claim.

3. Update Client Onboarding and GST Review Procedures

Internal processes should include a review of pre-registration assets.

Process changes

• Add questions about secondhand assets acquired before registration.

• Review whether those assets are currently used in making taxable supplies.

• Assess whether taxable use has increased since acquisition.

Example

A new GST registrant may have:

• Secondhand tools

• Machinery

• Vehicles

• Office furniture

that were previously overlooked but may now generate a valid GST input credit.