Hi
We have a contractor and we agreed to pay him the contract related expenses.
He claims the full cost (inclusive of GST) of the expenses from us (eg: travel). If he provides us the tax receipts of those claims, can we (the company) claim the GST credits?
Hi @abc789
When a contractor on-charges for parts of their service, it all counts as providing their service. That means the total cost has GST apply to it, even the 1:1 on-charging of things like travel. This means you're paying GST to the contractor, and therefore can claim the GST credits in your activity statement. :)
You can read about taxable sales on our website.
Hi @abc789
When a contractor on-charges for parts of their service, it all counts as providing their service. That means the total cost has GST apply to it, even the 1:1 on-charging of things like travel. This means you're paying GST to the contractor, and therefore can claim the GST credits in your activity statement. :)
You can read about taxable sales on our website.
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