What are Fuel Schemes
Fuel schemes help to provide credits that will reduce the costs of fuel and provide additional benefits to help encourage businesses to recycle waste oils.
Fuel Tax Credits for Businesses
Fuel tax credits work to provide businesses with credits for the tax associated with fuel. This is included in the price of the fuel which is also used in:
• Light vehicles
• Heavy vehicles
The amount of fuel tax credit you receive depends on different factors which include; when you received the fuel, what type of fuel you received, and how you used it. It’s important that you check the rates each time you do any business activity statement or documentation because the rates for fuel tax credits change frequently.
Some activities and types of fuels do not qualify for a fuel tax credit. This will be something you will want to check out ahead of time to ensure you get the most beneficial information.
How to Register for Fuel Tax Credits
Before you are able to qualify for your fuel tax credits, your business must register for the fuel tax credits and GST. When you first start the process of registering for the tax credits, you will want to make sure you have some information available ahead of time. This information includes the date you want the registration to begin. Remember, you can only claim your tax credits if you acquire the fuel within the past four years and are registered for a GST at the time you have the fuel.
Tax Period for GST
If you’re already registered for GST, you will then want to add onto this your registration for any fuel tax credits. This will not affect your GST tax period. However, if you make the decision that you want to access your tax credits on a more frequent basis, this can change your GST tax period.
When you own and operate a business, there are certain tax benefits that you may receive. It’s important to look into these benefits ahead of time so that you do not miss out on any that you qualify for. One of these benefits includes a fuel scheme and fuel tax credits. If you follow the appropriate steps for registering ahead of time, you are ensured of taking advantage of these tax benefits.
It’s important to seek advice from a tax advisor for any information you are unsure of. For further questions on Fuel Schemes, contact Femia Accountants. Our Perth based accountants are more than capable of handling any and all of your accounting needs.