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?
- posted
16 years ago