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Employer responsibilities Ngā kaiwhakawhiwhi mahi takohanga

GST on allowances

Employers may be able to claim GST on allowances paid to employees.

When can you claim GST credits?

You can claim for reimbursement of an employee's actual expenses if:

  • they incur the expenditure in the course of your business
  • you are registered for GST, and
  • you hold a correct GST tax invoice (or for amounts under $50 you retain details of the actual expenditure incurred).

When can you not claim GST credits?

You cannot claim if the allowance is:

  • a general allowance that does not reimburse the employee's actual expenses incurred on your behalf, or
  • paid to meet the employee's private expenses.

Find out more

To find out more about GST, go to Goods and services tax (GST).