From the Institute of Chartered Accountants

Businesses involved in the buying and selling of second-hand goods (second-hand goods traders) need to note the Australian Taxation Office has issued GST 2013/2 determination on the acquisition of second-hand goods for the purpose of sale in the ordinary course of business.  This ruling sets out the guidance of what business activities constitute buying and selling goods. 

Generally those businesses that are carrying on business are entitled to notional input tax credits even though there is actually no input tax credits attached to the goods purchased from non GST registered individuals.

If you buy and sell second-hand goods, talk to us about how this ruling can benefit you!