We have been invoiced $3300 which includes $300 GST. Do I have to charge my client $3630 so they are actually paying a total of $630 GST on a $3000 charge? I've been led to believe I do but this will mean my client is paying GST on GST.
Hi @Joannebull
On-charging of GST can be taxable in some cases.
This may seem like a double dip of GST, but it's not because the GST is what we call an 'ordinary business cost' of you as the supplier. Ordinary business costs are used to work out the price you charge for the supply, and you calculate the GST on that price.
Having said all that, it depends on what you're invoicing for, so we might need a bit more info if you want a more specific answer.
Hi @Joannebull
On-charging of GST can be taxable in some cases.
This may seem like a double dip of GST, but it's not because the GST is what we call an 'ordinary business cost' of you as the supplier. Ordinary business costs are used to work out the price you charge for the supply, and you calculate the GST on that price.
Having said all that, it depends on what you're invoicing for, so we might need a bit more info if you want a more specific answer.
Interstate transport and the goods had to be delivered to us to enable our company to proceed with providing the relevant service to our client. I would have sent the invoice directly to the client but unfortunately my assistant has already paid. Yes, it definitely feels like 'double dipping'. Charged GST and then an even bigger amount of GST including on the actual GST component. I might need to ring to discuss this, as I've had to answer the question in an indirect way.
Hi Tony,
I asked this question separately, but didn't receive and answers from ATO staff. Coud you help?
I work for a company which uses contractors to deliver work on behalf of the company. Sometimes the contractors incur travel expenses, which we need to pass on to the client. What is the GST treatment on the client invoice for these travel expenses? All parties are registered for GST.
Example:-
Contractor A invoices Company B for $1,000 consultancy fees and $50 travel expenses plus GST. The invoice looks something like this:
Item Amount GST Total
Consultancy $1000 $100 $1,100
Travel costs $50 $5 $55
Total $1,050 $105 $1,155
Company B then invoices the Client C for these costs. How are the travel costs invoiced?
Option 1:
Item Amount GST Total
Travel costs $50 $5 $55
Option 2:
Item Amount GST Total
Travel costs $55 $5.50 $60.50
Thank you :)
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