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Gini(Newbie)Newbie
22 Aug 2023

Hi,

Just wanting to clarify how to invoice a customer (registered for GST) for the GST portion only of repair works to a car. The insurance company is paying for the ex gst portion of the repair works.

Thanks

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833 views
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Most helpful reply

WendyATO(Community Support)Community Support
22 Aug 2023

Hi @Gini,


It will depend on who the insurer pays and whether the insurer has a contract with the repairer to repair cars it has provided policies for.


Also, the customer has to advise the insurer they will claim a 100% GST credit for the GST included in the policy price.


Based on these factors will depend on what you need to include in the invoice for GST purposes if applicable.


There are a number of situations and examples under the section car insurance settlements.


For examples 1 Betty and 2 Sarah you would invoice for the full cost $5,500 to the client including GST.


Example 3 Tom - no invoice to be provided to the customer. As the insurer has contract with the repairer and pays the full cost $5,500 including GST.

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Most helpful reply

WendyATO(Community Support)Community Support
22 Aug 2023

Hi @Gini,


It will depend on who the insurer pays and whether the insurer has a contract with the repairer to repair cars it has provided policies for.


Also, the customer has to advise the insurer they will claim a 100% GST credit for the GST included in the policy price.


Based on these factors will depend on what you need to include in the invoice for GST purposes if applicable.


There are a number of situations and examples under the section car insurance settlements.


For examples 1 Betty and 2 Sarah you would invoice for the full cost $5,500 to the client including GST.


Example 3 Tom - no invoice to be provided to the customer. As the insurer has contract with the repairer and pays the full cost $5,500 including GST.

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Invoicing a customer the GST portion of repair works on car with insurance claim. | ATO Community