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mgr(Newbie)Newbie
14 Sept 2023

Hi all


I have seen similar questions posed and answered before but for absolute clarity, I would like to ask again. My chippy has sent me an invoice for roofing work done by a roofer that he has used before after framing up. The roofer has sent him an invoice inclusive of GST for $2500. The chippy, who has largely managed the build for us as owner builders, has paid the invoice and then issued me an invoice from his business for the amount he has paid the roofer ($2500) plus 10% GST he has added on top ($2750). Is he required to charge GST for a service provided by someone else which has already had GST applied or is this just his margin disguised as GST? Is he able to claim the GST he has applied back as an input tax credit?


Thank you in advance

mgr

4,214 views
3 replies
4,214 views
3 replies

Most helpful response

Most helpful reply

EdenATO(Community Support)Community Support
19 Sept 2023

Hello there @mgr,


This is not a double up on GST.


If your Chippy is registered for GST, they are required by law to charge you GST for the services they provide to you. Who charges them GST is their own business and their own concern. This has no effect on what is charged to you.


If the chippy has decided the services they provided you is worth $2,500 then they need to account for GST in addition to that.


You can check out our how GST works webpage for more info.

All replies

Most helpful reply

EdenATO(Community Support)Community Support
19 Sept 2023

Hello there @mgr,


This is not a double up on GST.


If your Chippy is registered for GST, they are required by law to charge you GST for the services they provide to you. Who charges them GST is their own business and their own concern. This has no effect on what is charged to you.


If the chippy has decided the services they provided you is worth $2,500 then they need to account for GST in addition to that.


You can check out our how GST works webpage for more info.

mgr(Newbie)Newbie
20 Sept 2023

Thank you for posting a reply. I guess the reason for my question is that the services haven’t been provided by the chippy. The chippy has received an invoice for roofing done by another subbie (the roofer) which was inclusive of GST. The chippy, on the basis that he has sent the roofer a text to say the job is ready, has then received the invoice upon completion of the job and paid it. In invoicing us, the chippy has then added 10% on top of the roofer’s invoice. In effect, this means that we have paid $250 more for the same job without receiving any additional benefit. Maybe the answer is that we should have contacted the roofer ourselves and paid him directly but I would have thought if anything, the chippy would charge GST on the ex-GST cost as per this thread: https://community.ato.gov.au/s/question/a0J9s000000LIaf/p00176458

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