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gst on invoicing and refusal to pay it

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hoping for some help. I have 2 costumers that refuse to pay their gst on their invoice, As im a dressmaker i normally do a quote and then add gst to the invoice when invoicing. Im not sure if this is the right way to do this but these 2 point blank refuse to pay it and want me to take it off their invoices tia

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Hi @chrissie-86

 

Welcome to our Community!

 

There are a few things to consider here with the situation you've advised.

  1. Is your ABN showing as being registered for GST on ABN lookup, as if not this may be why they're refusing to pay?
  2. Are your tax invoices set up correctly? You can find information on Issuing tax invoices on our website.
  3. Does GST apply to the sale; you can find information about taxable supplies on our website.

Generally though, if a purchaser refuses to pay the GST component of a sale, the supplier is still liable to remit the relevant GST to the ATO. Non-payment of the GST amount is a contractual matter between the supplier and the purchaser, and becomes a private debt collection matter between those parties. The amount of GST the supplier is liable to remit is 1/11th of the taxable component of the total payment.

 

If you have further questions, you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

 

 

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Best answer

ATO Certified

Community Support

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Hi @chrissie-86

 

Welcome to our Community!

 

There are a few things to consider here with the situation you've advised.

  1. Is your ABN showing as being registered for GST on ABN lookup, as if not this may be why they're refusing to pay?
  2. Are your tax invoices set up correctly? You can find information on Issuing tax invoices on our website.
  3. Does GST apply to the sale; you can find information about taxable supplies on our website.

Generally though, if a purchaser refuses to pay the GST component of a sale, the supplier is still liable to remit the relevant GST to the ATO. Non-payment of the GST amount is a contractual matter between the supplier and the purchaser, and becomes a private debt collection matter between those parties. The amount of GST the supplier is liable to remit is 1/11th of the taxable component of the total payment.

 

If you have further questions, you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.