When you’re on the hunt for second-hand bargains on platforms like Facebook Marketplace or Gumtree, it can feel a little fuzzy when it comes to business purchases.

Whether you’re picking up a used office chair, secondhand tech, or snagging discounted supplies, one question often comes to mind: Do I need a tax receipt to claim this as a business expense?

Let’s break down what you need to know to ensure your purchases are tax-deductible—even when those formal tax receipts aren’t part of the deal.

 

What exactly counts as a tax receipt?

Keeping accurate records of your business expenses and your bookkeeper is crucial, but what qualifies as a “tax receipt” isn’t always set in stone. Typically, a valid tax receipt should show:

  • The seller’s name
  • Date of the transaction
  • A description of what was purchased
  • The amount paid (including GST if applicable)

Sounds simple enough when you’re buying from established businesses, right?

But when it comes to Facebook Marketplace or Gumtree, let’s be real—most private sellers aren’t going to whip out an official receipt.

No worries though—you can still claim the expense, just with a bit of extra documentation.

What to do when you don’t get a tax receipt

So, what do you do when a formal receipt isn’t on the cards? Time to get creative!

Even for these informal transactions, you need to have your documentation game strong to keep the ATO (and your bookkeeper) happy.

Here’s how to cover your bases:

  • Screenshot the conversation: Capture a screenshot of your chat with the seller where you agree on the item and price.
  • Save payment proof: Hold on to records of payment—whether it’s through a bank transfer, PayPal, or any other traceable method.
  • Create a written record: No receipt? No problem. Write down the details yourself. Here’s an example of what that could look like:
    bookkeeper

    When you combine this simple record with your payment confirmation, it’s usually enough to keep the tax office happy.

    Practical tips for claiming business purchases

    So, what do you do when a formal receipt isn’t on the cards? Time to get creative!

    Even for these informal transactions, you need to have your documentation game strong to keep the ATO (and your bookkeeper) happy.

    Here’s how to cover your bases:

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    • Use traceable payment methods: Avoid cash—it’s harder to track. Stick to PayPal, bank transfers, or anything that leaves a paper trail.
    • Document straight away: Don’t wait. Write down the details while the transaction is fresh in your mind.
    • Stay organised: Log it all in your bookkeeping software under the correct category so you’re all set when tax time rolls around.

    Even when you’re buying off Facebook or Gumtree, keeping clear, accurate records is key to making sure your business expenses are tax-deductible.

    So next time you snag a great deal for your office, don’t forget to dot your i’s, cross your t’s, and capture all the details! 

    Keep Your Business Purchases Compliant and Well-Documented!

    Making sure your business expenses are properly documented is essential. Need help ensuring your records are tax-ready?

    At Dollars + Sense, our bookkeeping services for small business will help you navigate the complexities of tax receipts and keep your finances in perfect order.