There may be many reasons why your phone or utility account may be in credit and it's not straightforward as to what is/isn't claimable.

What can I claim?

If you are making a lump sum payment to your provider to put your account in credit (i.e. so you don't have to worry about your bills for a while) then you may claim this payment as a business expense (for the proportional amount used for business).

  1. You will need to confirm if the provider has charged you GST on the top-up amount. If so, then make sure you include this on the expense claim. You then don't need to raise any more expense claims until your credit account is no longer in credit (i.e. until you start making paying bills and/or topping up your account again)
  2. If GST is NOT charged on your top up amount then it is likely the provider calculates the GST at the end of each month depending on the charges that were incurred for that period. In this case you will need to do the following; 

a) Raise an expense for your top-up amount and make sure that the expense has ZERO GST applied.           

b) Everytime you receive a bill itemising out the costs for that period, you can claim the GST portion only by raising the value of the GST only, and overriding the GST amount to match the value of the claim (effectively making the expense claim zero value) as you are only claiming the GST value.

This process ensures both the initial payment and GST amounts are accounted for in the correct periods.         

For pre-pay phone top-ups, GST is apportioned at the point of payment so you can just claim the top-up amount including GST (as per step 1)

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