Printable View
If I subcontract part of a job and they invoice me for their labour and materials, then I claim the GST, the subbies claims the GST on the materials too, so GST on the materials has been claimed twice. How do you work this situation out?:?
Cheers
Michael
Yeap, it has been claimed twice BUT... it has also been invoiced twice. :wink:
Supplier invoiced subbie & he claimed it & then invoiced you & you claimed it.
Yeah but isn't it supposed to be claimed only once?Quote:
Originally Posted by Cliff Rogers
Cheers
Michael
And then I pay the contractor and pay GST, and sell the building and the owner pays GST too, so .... if you add up the whole food chain you'll get to 6 or seven or eight times.
Mostly of course, each time the item gets passed on it increases in value, so a $1.00 bolt with 10c worth of GST ends up with a being a $4.00 bolt with 40c worth of GST, it doesn't matter how many times it gets passed on, it's the 40c Mr Costello is waiting for! :wink:
Cheers,
P
:D
By you yes, but if you then charge somebody else + GST & they are registered for GST, then they can claim it too, but only once.Quote:
Originally Posted by mic-d
Smack bang ON. Finally someone else sees this 'system' for what it is.Quote:
Originally Posted by bitingmidge
Bring on the tax cuts, and especially the removal of the double dipping 'stamp duty' on property sales. Give the 'punters' a bit back.
Onya Peter..
In the end there is only one person that pays the GST is the consumer the one on the end of the whole chain.
Sadly true Baz. They've got no way of passing on any costs. So, things like tax cuts, whilst they sound like a windfall, and are often used by the Reserve Bank as an excuse to 'trot out the possibility of interest rate rises' are, in reality, a mechanism to maintain some fairness.Quote:
Originally Posted by Barry_White
Sadly also, is the probability that the other side won't be any different.
C'est la vie.