Blog post: Does GST apply to parking?

Which parking costs are GST deductible?

Understanding the nuances of GST, particularly in relation to parking expenses, can be challenging. Parking costs incurred for business-related activities are eligible for GST deductions. This includes parking expenses directly associated with carrying out business operations such as parking fees for business meetings, client visits, or deliveries.

GST and business expenses

Parking, whether operated by a local authority or a private company, is generally subject to GST throughout Australia. The GST rate can vary depending on the specific parking provider. When you park, the total parking fee typically includes GST. To find out the GST amount, it’s important to check the parking receipt or invoice as it will indicate the amount of GST included in the cost.

Which parking costs are eligible for GST deductions?

When it comes to parking, GST may be applicable to various components of the overall parking expenses, including transaction costs and service fees related to your parking app, such as transaction or subscription fees. The good news is that you can request a GST refund on these expenses. Additionally, if you park in a business garage or parking lot, GST is also applicable to the parking costs. It's important to keep your receipts carefully for proper declaration. Keeping meticulous records for tax purposes is essential. Employees often lose parking receipts and unforeseen events may lead to unplanned parking costs and even fines.

How can I effectively track all expenses associated with business parking?

There are numerous possibilities to optimise expense management for businesses. EasyPark Business solutions simplify accounting and enable you to easily identify and process reclaimable GST on parking. EasyPark Business is a versatile digital parking solution designed for businesses of all sizes, enabling streamlined expense administration and empowering your employees to easily manage their parking activities through a user-friendly mobile app. At the end of each month, you can expect a clear invoice that consolidates your GST amount. This invoice encompasses not only your transaction costs but also your business parking expenses. By providing this comprehensive overview of your parking expenditures, we simplify your GST process, allowing for easy management and streamlined financial tracking.

With EasyPark Business solution you can conveniently pay for parking, reduce risk of parking fines, optimise parking time, and track parking expenses. It's a comprehensive solution that simplifies your parking experience while helping you control costs effectively.

References:
[1] GST rules and rates