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Re: Contractor registered for GST but not charging GST on invoice

Initiate

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Replies 2

Hi everyone,

 

If a contractor that I have hired for my business is registered for GST but when sending a final invoice does not charge it. Is that okay? As an employer am I okay to process the invoice as GST Free? 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 1

Hi @sarahk,

 

Thank you for contacting the Community!

 

If an organisation or person is registered for GST, or required to be, they will generally be liable to pay GST to us on the sales of goods and services. So If they haven't charged GST when required to they will still be liable to pay it to the ATO.

 

As an employer or client your responsibility is only to pay the invoice provided, you can however bring it to the attention of the contractor, that because they are registered for GST they will be liable to pay it whether or not they charge it.

 

Links

When to charge GST

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 1

Hi @sarahk,

 

Thank you for contacting the Community!

 

If an organisation or person is registered for GST, or required to be, they will generally be liable to pay GST to us on the sales of goods and services. So If they haven't charged GST when required to they will still be liable to pay it to the ATO.

 

As an employer or client your responsibility is only to pay the invoice provided, you can however bring it to the attention of the contractor, that because they are registered for GST they will be liable to pay it whether or not they charge it.

 

Links

When to charge GST

Initiate

Replies 0

Perfect! Thank you so much for explaining Smiley Happy