Purchasing goods second hand has become one of the best ways for both businesses and individuals to get the items they need at great prices. Looking at the success of websites like Trade Me and eBay highlights a worldwide shift towards the age old adage, 'One man's junk is another man's treasure'. However, when it comes to purchasing second hand goods for your business, it is important to remember that you can claim GST on the purchase, even if the seller isn't GST registered. Second hand goods are defined as anything that was previously paid for and owned by someone else. However, there are some exceptions to the rule - things like primary produce, goods supplied under a lease or contract, livestock, or goods consisting of any fine metal of any degree of purity. One of the most important things to remember if you do wish to claim GST on any second hand products is to record a series of details for that purpose. By recording the name and address of the supplier, the date of the purchase, a description of the goods, the quantity bought, and the price paid, you can file a tax return from your small business software in much the same way you would file a normal return. There are restrictions about reclaiming GST after purchasing from an associated person. People like relatives, friends, a company trustee, or anyone with more than 25 per cent interest in your business is an associated person. If you purchase from an associated person, your GST claim is limited to the lowest between the purchase price, the current market price of the goods, or the GST component of the original cost of the goods. There are a number of things to consider when it comes to filing GST claims within your business, but it's important to take the time and understand each and every transaction to both avoid legal trouble, and to get back the maximum amount possible.