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Re: Markup on Materials, or markup on Input Tax Credit?

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I'm new

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supplier: gst registered tradie, small job, no written contract required by law

option for customer or tradie to supply materials

if tradie supplies materials, then 10% added to material cost

(Both parties got some materials)
situation: tradie trying to add 10% to total invoice that includes gst and that works out to 21% markup on material cost. Tradie doesn't seem to get that they make their 10% by adding 10% to material cost AND they still have the gst component as a credit.

i can't see how you can charge a markup on anything but an expense. adding a markup to a CREDIT seems wrong in accounting terms, ethically and perhaps legally?   Comments?

 

 

 

1 ACCEPTED SOLUTION

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Most helpful response

Community Support

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Hi @SkyBlue

 

Thanks for your post.

 

This is a question that has come up a few times in our Community. Here are some threads that you can check out:

 

Hope this helps.

 

Thanks, Chris

1 REPLY 1
Highlighted

Most helpful response

Community Support

Replies 0

Hi @SkyBlue

 

Thanks for your post.

 

This is a question that has come up a few times in our Community. Here are some threads that you can check out:

 

Hope this helps.

 

Thanks, Chris