Hi,
I am a home maintenance service provider.
Currently I charge customers for billable hours, as well as materials with a 10% markup added.
When I have calculated the invoice amount, my invoicing software automatically calculates the GST on the sum of these two parts and adds it on top.
Ie:
100 Labour
100 Materials + 10% margin on top.
210 total invoice amount.
GST added on top would bring the total invoice to 230. (210x1.1)
Because I buy my hardware from a hardware supplier, and they have already incorporated a GST amount into their own product before selling to me..Should I remove the GST component listed on my hardware suppliers invoice before adding my own mark up and additional GST?
More context: I understand I can claim GST credits, however does that mean I need to remove the GST component from my suppliers invoice before computing my own GST?
My client is querying this.
Thanks!
1,298 views
1 replies