In most instances you can claim a credit for GST included in the price of any goods and services you buy for your business. However, when you make a business purchase and a portion will be used for private purposes or a non-deductible business expense, the amount of GST credit claimed needs to be adjusted.
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Your vehicle is used for 80% business purposes and 20% private. The GST credit allowed is only 80% of the total GST paid. Only that amount of the expenditure used for business purposes is reported for the purpose of claiming a tax credit.
Because of the particulars surrounding GST credits, visit the ATO website if you're in Australia, or the IRD website if you're in New Zealand, for detailed information on creditable amounts.
You would record these types of purchases in MYOB Essentials <product name?> by splitting the business and private purchases on each transaction. However, because of the specifics involved in determining which purchases are taxable, there's no "one size fits all" solution to setting up your MYOB Essentials<product name?>. Consult an accounting advisor (such as your accountant) for more information about what will work best for your business.
Want to learn more?
We might not be experts in private use, but our community forum is a great place to connect with business professionals who are happy to share their insights.