Dr Jones runs a medical practice and botox clinic (note: A botox treatment is treated as a
Question:
Dr Jones runs a medical practice and botox clinic (note: A botox treatment is treated as a cosmetic procedure which temporarily paralyses targeting muscles in the face to give a more youthful appearance). During the 2017/18 income year, he derived the following supply amounts (inclusive of GST where applicable):
GROSS fees from patients for medical services ............................$375,000
GROSS fees from botox treatments (purely cosmetic) ...............$275,000
GROSS wages for lecturing at university .........................................$45,000
Interest received on business bank account .....................................$15,000
GROSS payments received from selling plain bottled water ..............$3,300
GROSS payments received from selling sparkling bottled water ......$3,300
He also incurs the following expenses (inclusive of GST where applicable)
Botox injections ................................................$27,500
Bottled water (plain) to sell in his practice .........$550
Bottled water (sparkling) to sell in his practice ..$550
Computer for private use ...................................$1,650
Wages (1 x employee) .......................................$25,000
Calculate the GST payable on supplies for the 2018/19 income year
Calculate the GST tax credits on for the 2018/19 income year
What is Dr Jones’ net GST position for the 2018/19 income year?
Expert Answer:
