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Blog post: Simplifying business parking and expense management
Managing costs and understanding GST implications can be a complex task - especially for business parking. Keeping track of your employees' parking behaviors and expenses can be a hassle and requires an efficient process. In this blog post, we will explore everything you need to know about business parking and how you can optimize the process for greater efficiency.
What to do with business parking costs?
When it comes to handling parking costs incurred by your company, there are several options available.
If employees use their private vehicles for business purposes, you can reimburse the parking costs through a travel allowance.
When there are call-out costs, you can include the parking expenses accordingly.
For company cars, parking costs can be included in the profit and loss account (revenue statement).
It's important to note that not all parking costs incur Goods and Services Tax (GST) charges.
Understanding GST implications
Parking around Australia on and off street is usually subject to varying GST rates, included in the total parking fee, with the specific amount indicated on the parking receipt or invoice. In contrast.
The ATO states:
You can claim a deduction for parking fees and tolls you incur when you use your car or other vehicle for work-related purposes.
You can’t claim a deduction for parking at or near a regular place of work. You also can’t claim a deduction for tolls you incur for trips between your home and work. These are private expenses.
Nevertheless, when utilising a parking app, any transaction or subscription costs incurred as service fees, which also encompass reclaimable GST, can be reclaimed for business purposes.
Simplifying the complexity of business parking expense management
Keeping track of multiple employees, vehicles and various costs with and without GST can quickly become overwhelming. Additionally, the burden of handling paper parking tickets adds to the complexity.
To simplify business parking administration, EasyPark Business digitalises the entire process, empowering your employees to easily manage their parking activities through a user-friendly mobile app. Additionally, it offers a self-service portal specifically designed for admins, enabling streamlined processes to manage users, review costs, obtain monthly invoices, and manage parking permissions with just a few clicks.
Utilising a mobile-based paid parking management solution
EasyPark's business solution goes beyond being just an app or employees who park for business. Through the EasyPark Business self-service portal, administrators can say goodbye to the tedious task of dealing with piles of paper receipts and struggling to keep track of individual parking expenses. With EasyPark Business, all your parking costs are effortlessly aggregated into a single invoice. This invoice includes GST specifications, ensuring clarity in your parking expenses.
In conclusion, business parking doesn't have to be overwhelming or burdensome. By leveraging EasyPark business, you can simplify your parking administration, efficiently manage costs, and ensure compliance with VAT regulations.
References:
[1] Expenses for parking, tolls, accidents, license and fines (ato.gov.au) updated 25 June 2024
Discover the solution that fits your needs
For medium and large enterprises
In the dynamic landscape of medium and large enterprises, optimizing costs and streamlining operations is a top priority. With EasyPark Business, your employees can manage their parking effortlessly, eliminating the tedious task of reimbursement reports. Discover how EasyPark Business can enhance your employee experiences and boost your administrative efficiency.
For small businesses
In the world of small businesses and self-employment, every moment and resource counts. EasyPark Business simplifies parking management, saving you time and frustration when it comes to finding spots, making payments, and managing receipts. All your parking-related expenses are unified into a single invoice for your convenience.
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Blog post: Does GST apply to parking?
Are you aware that your business may be eligible to reclaim the Goods and Services Tax (GST) on business parking expenses? Many businesses are missing out on this opportunity to enhance their savings. In this blog post, we will reveal the secrets of GST [1] reclaims for business parking and how your business can take full advantage of this hidden opportunity.