Thread: a question about GST

Yeap, it has been claimed twice BUT... it has also been invoiced twice.

Supplier invoiced subbie & he claimed it & then invoiced you & you claimed it.

Originally Posted by Cliff Rogers

Yeap, it has been claimed twice BUT... it has also been invoiced twice.

Supplier invoiced subbie & he claimed it & then invoiced you & you claimed it.

Yeah but isn't it supposed to be claimed only once?

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!

Cheers,

P

Originally Posted by mic-d

Yeah but isn't it supposed to be claimed only once?

Cheers
Michael

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.

Originally Posted by bitingmidge

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!

Cheers,

P

Smack bang ON. Finally someone else sees this 'system' for what it is.

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.

Originally Posted by Barry_White

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.

Sadly also, is the probability that the other side won't be any different.

C'est la vie.