GST

Can anyone help me, please. I have a new company and I am a bit confused as to how to charge the GST that I pay on materials I buy for customer use to the customer. I know that I have to record the GST that I have paid my supplier as a liability, but how do I charge the customer on the finished product? If, say, I pay $100 for an item + 6% GST for a total cost to me of $106, and then sell the item to a customer for, say, $125 + GST for a total of $132.50, am I charging GST on top of GST?

Reply to
paisleyjl
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Your supplier is responsible for collecting the GST he charges his customers. Your bill to him is $106. Don't worry about the GST in this case. In the USA only the end reseller is responsible for charging tax which eliminates the charging of tax on top of tax. You might your government policy on who is responsible for charging tax.

Likewise, you are responsible for the GST charged to your customer. Setup the tax authority and tax code to be included on your customer invoice. When the time comes cut a check to your government for the amount of GST collected during that period.

Reply to
Laura

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